Rising prices and dwindling land banks, combined with improved transport connectivity, are changing the shape of Bangkok’s condominium market as new projects move away from the city’s centre; however, oversupply in some areas could continue to weigh on sales.
With the expansion of bus and rail transport improving connectivity in the capital, mid- and upper-range property developments are set to migrate away from traditional downtown areas, according to international real estate consultancy Colliers International Thailand.
Around 60,000 condominiums will be added to existing stocks this year, building on the 300,000 units that have entered the market since 2013, Phattarachai Taweewong, senior manager of the firm’s research department, told local press in April.
The extension of the Metropolitan Rapid Transit Blue Line connecting Tha Phra to Bang Sue, which is close to completion, has accelerated development in the city’s west. An estimated nine condominium projects are set to be launched in the area this year, bolstering supplies in the middle and lower end of the market.
Meanwhile, the upscale Thonglor district, which is already well connected by the Bangkok Mass Transit System, or Skytrain, will see the most activity this year, with around 3300 units to be added.
The area’s high land prices indicate the new developments will be in the upper brackets of the market. Meanwhile, central Bangkok’s Phaya Thai district, also linked by the Skytrain, has around 2000 units in the pipeline for this year.
While the number of planned projects remains strong, there is already a surplus of supply on the condominium market: some 45,000 units remain unsold from 2017, with client take-up slowing in some districts as buyers become more selective about price and location.
Bangkok falls 19 places to 49th most expensive location worldwide
Locations reliant on international tourism have seen their rental markets hit especially hard during the pandemic, resulting in some major drops in the rankings. Bangkok has fallen 19 places to 49th, while Hanoi saw a similar drop of 12 places to 81st.
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