Mid-price condo units selling well
Despite fears in recent years of oversupply, the Bangkok condominium market has adapted itself to the situation.
Activity in the market has been bustling, with a good balance between new launches and new sales, according to real estate services and investment management firm Jones Lang LaSalle.Dan Tantisunthorn, head of research at Jones Lang LaSalle Thailand, said: "Despite a weaker economic outlook and continued growth in the number of new launches, the Bangkok condominium market has remained healthy, with demand keeping pace with supply over the first half of 2006." With weaker economic conditions, more developers have moved from the luxury segment to mid-priced projects. "These mid-priced projects consisting of studios and one-bedroom units are selling well to young professionals, who represent a wider buyer base, compared to that in the luxury segment," said Dan. "Having said that, the luxury projects in prime locations with easy access to the BTS and MRT systems have continued to perform well, with high-net-worth Thais and overseas investors being major buyers," he added. Twenty projects representing 2,340 units were completed in the first half of the year. An additional 21 projects representing 2,980 units are expected to be completed in the second half, bringing the total number of units in central Bangkok to 52,880 by the year's end. Most of these newly completed units were from high-end projects launched a few years ago. The average sales rate for completed projects is almost 100 per cent. Fourteen projects representing 5,300 units were launched in the first half of this year. This outpaced the six projects comprising 4,530 units launched in 2005. However, these newly launched units are selling well, at an average sales rate of 76 per cent. All in all, slightly more than 4,400 units remained unsold in central Bangkok in July. Most of the newly launched projects were in the mid-priced segment, primarily of the studio and one-bedroom types. These are aimed at the growing demand from young professionals who have limited budgets, but prefer living in a condominium in the city centre. Sukhumvit is the most active area, accounting for 35.4 per cent of all new launches. In the luxury segment, Thai-Singaporean joint venture developers have been active. I The average price for condominiums increased by 7 per cent to Bt77,170 per square metre in the first half, mainly due to higher construction costs. The Nation
|
