Bangkok Residential Market View
We conduct research on the latest conditions prevalent in the Bangkok Condo market, including supply, demand, and current property requirements of condo buyers.
With our network of offices, CBRE Thailand has unparalleled access to resources in Bangkok, these enable us to identify trends that assist our customers.
In Q2 2014, the total completed supply in downtown, midtown, and suburban areas reached 422,918 units. Of these, 104,321 units or 24.7% were located in the downtown area.
Three projects were launched in Q2 2014 in the downtown area. The number of newly launched units saw a slight increase from 1,227 units in the previous quarter to 1,245 units in this quarter. Around 66% of all units in newly launched downtown projects were one-bedroom units while 18% were two-bedroom units.
The Central Lumpini area achieved the highest percentage change in re-sale price levels, increasing by 15% Y-o-Y.
Consumer Confidence has risen from the first quarter this year, following the May 22nd coup. However, the slowdown in sales, new launches and resales in the overall condominium market has persisted in Q2 2014.
We are not significantly worried about the downtown market since there is limited new supply and a small amount of built but unsold inventory.
We forecast that there will be an increase in downtown sales, new launches and resales in the second half of this year. We believe that prices in completed and under construction projects in the downtown area will continue to rise. Land prices have not fallen so new projects will have to be priced at levels higher than the existing projects.
Our concern is mainly focused on the midtown and suburban market where developers have been building similar one-bedroom products. We forecast that over 100,000 midtown/suburban condominium units will be completed in 2014 and 2015. The completion of these units will be a significant stress test for the market at a time of reduced demand.
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