Published on August 9, 2019
Bangkok’s Condominium Market Today
According to Colliers International Thailand’s latest report, in the first half of 2019 there were 18,075 new condominiums put on the market, which totals 4,486—or 20%—less units when compared to the same period of the previous year. But there is still solid demand for condominiums in Thailand from overseas buyers, especially those from China. This demand is clear from certain sales offers, for both newly launched units and unofficially launched units, being introduced to Chinese investors.
However, since the beginning of the second half of 2018 the market began to see the purchasing power of foreign countries started to decline. As a result, the projects most attractive to foreign buyers now need to be reasonably priced and they must insure that the buyers can make a profit, or get a good return on their investment. Foreign investors, especially Chinese, have been focusing on buying projects that are in good locations within Bangkok, such as the Rama 9-Ratchadapisek district, or other centrally located areas.
Some condominium projects from well-known or listed developers achieved a high take-up rate within a short time period after being officially launched, due to the developer’s excellent sales strategies and/or marketing campaigns. In addition, some big developers conducted direct sales and even organized special events for VIP customers that offered special prices lower than official launch prices. Thus, some development projects were sold out, or reached a high take-up rate, within a few days after the official launch. Some big name developers even had their launches in foreign countries, working with local agents.
Foreign buyers have become a significant new target group for listed and well-known developers in Thailand, especially for projects located in areas along Sukhumvit Road and Ratchadapisek Road, and in the city’s Central Business District. Some developers also sell units to foreign buyers in projects located along Bangkok’s new mass transit lines currently under construction. Some newly launched condominiums in this quarter reached the full foreign-buyer quota, and the foreign buyers of these projects were mainly Chinese.
The average price of new condominiums in Bangkok launched during the 2nd quarter of 2019 was around THB 148,365 per sq.m. Within the past few years, the average selling price of Bangkok’s new condominium units has seen continuous increases of approximately 8 – 10% annually, and even higher in some prime locations. Many developers, especially in 2019, have focused on constructing units with selling prices of THB 70,001 – 150,000 per sq.m. Nearly 70% of units launched in first half of 2019 are located in areas along the city’s BTS and MRT mass transit lines, which are always popular locations for buyers and investors.
Although most condominium projects launched during the 2nd quarter of 2019 are selling for lower than THB 100,000 per sq.m, new condominium projects in areas close to BTS stations are already valued higher than THB 250,000 per sq.m, and continue to increase every quarter. In fact, every quarter the average selling price of many condominium projects launched has been higher than that of old projects, or even projects launched in the past few months, not only in areas along existing mass transit lines but also in areas along mass transit lines currently under construction.