CEO Nigel J Cornick said that 5,037 condominium units in Bangkok worth over Bt37.4 billion were unsold at the end of last year. The statistics pertained to condominium projects priced up to Bt2 million per unit.

Inner-city Bangkok includes the Sathorn, Sukhumvit, Central Lumpini, Silom, Riverside, Rama III and Phya Thai areas.

Sukhumvit is the main location for unsold condominium projects worth Bt13.3 billion or 35 per cent of total unsold stock worth Bt37.4 billion, followed by Silom/Sathorn worth Bt8.7 billion, Riverside (Bt6.9 billion), Central Lumpini (Bt5.6 billion) and Bt1.5 billion for the Phya Thai and Rama III areas.

Cornick said that if demand shows slight growth lower than supply - both, the existing supply of 5,037 units, and the new projects launched with construction completed of 5,460 units this year, 8,333 units in 2008 and 2,553 units in 2009 - the market for middle to upper condominiums will be at risk of oversupply this year and next year.

Meanwhile, resort condominiums at tourist destinations Pattaya, Koh Samui, Hun Hin and Phuket also risk facing oversupply in some locations.

According to the research, as of

last December, unsold projects at the four tourist destination areas were recorded at 2,466 units, worth Bt29 billion.

Despite the business risks, Raimon Land is continuing three new condo projects worth Bt18.5 billion this year. The three projects are The River on the Chao Phya worth Bt10 billion, 185 Rajadamri worth Bt6 billion and Amanpuri in Phuket worth Bt2.5 billion.

The company will also invest Bt2 billion to buy land for developing new property projects next year. Half of its investment budget will come from the company's cash flow and the rest will be borrowed from banks.

"We believe that our new projects in prime locations will meet both foreign and domestic customer demand and will succeed after launching in the market this year," he said.

Somluck Srimalee

The Nation