The sales rate for new condos launched in Bangkok in the second quarter fell to 15.7 %, an all-time low, beating the lowest previous quarter (35%) in 2010 when the “red shirt” political crisis brought Bangkok to a standstill.
Risinee Sarikaputra, director of research, said to the Bangkok Post that “The normal quarterly sales rate for new condo launches is around 40-50%,”
According to Knight Frank’s market research, Bangkok hit a decade-long record for new condos entering the market, with 65,000 new units launched throughout 2018, up 11% from 2017, the highest since 2009.
In the first and second quarter this year, new condo supply launched in Bangkok totalled 12,882 units and 14,988 units, respectively.
Knight Frank reported Bangkok had cumulative condo supply from 2010 to the first half of 2019 of 594,453 units with a sales rate of 84%, unchanged from 2017.
525,889 Empty homes in Bangkok
But according Dr.Sopon Pornchokchai, President of research and property valuation center in Thailand, Agency for Real Estate Affairs , there are 525,889 empty homes in Bangkok Metropolitan Region (BMR) which are mostly sold but does not have any residents.
Empty homes (Every type of residential units) are residential units which use less electricity than 15 units per month which indicates that there is almost no use.
These 525,889 empty houses make 10.3% of the 5,097,815 total housing units in BMR, which means that there is 1 empty house in every 10 houses. This ratio was lower than the situation during the Tom Yam Goong crisis, 20 years ago.
In 1995, Dr.Sopon Pornchochai founded 14.5% of empty houses from the total residential units in the market. Then in 1998, the ratio of empty houses reduced to 12.0% of the total residential units in the market.
9.2% of the total low-rise residential units are empty (there is 1 empty unit in every 11 low-rise residential units). While 13.9% of the total condominiums are empty (there is 1 empty unit in every 7 condominium units).
As condominiums are mostly used for an investment purpose while low-rise residential units are mostly used for residential purpose. Investors should invest in condominium carefully during this situation.
What’s top of mind for corporate real estate in 2019?
Flex isn’t just co-working, and it’s evolving rapidly. Companies both large and small are increasingly implementing new space concepts and flex models whilst also reimagining their existing workplace to be more agile and dynamic.
Asia Pacific’s real estate returns in a multi-currency landscape
On a three-year time horizon, JLL forecasts the highest annual total returns denominated in local currency to come from Singapore (12% p.a.), followed by Tier 1 cities in China and India.
Thailand Property News Of The Week
CBRE’s weekly property news snapshot features the latest residential and commercial real estate stories in Thailand and elsewhere that you cannot afford to miss – be it regarding residential, industrial, retail, office, hotel, land, or investment property.
Thailand Ecommerce Market: Shooting For Success
At present, the Thai ecommerce market is valued at USD 3.5 billion. According to a Google Temasek study, Thailand’s e-commerce...
Aspire Set to Become First SME Neobank in Southeast Asia with US$32.5 Million Raise
The recent financing has been led by Mass-Mutual Ventures Southeast Asia with participation from Silicon Valley’s Arc Labs and existing...
How is Thailand Bringing Technology to the Table?
In Asia, a country like Thailand has taken the initiative to implement agricultural biotechnology in its industry. The country has...