Recovery sign in Bangkok condominium market
Mr. Surachet Kongcheep, Senior Manager of Colliers International Thailand’s Research Department reports more than 14,170 units were launched in Q1 2012 while only 5,160 units were launched in Q4 2011. “The number of newly launched units in Q1 2012 is more than 14,170 units,” said Mr. Surachet. “This is an increase of approximately 9,000 units since Q4 2011. Some 60% of this number is located along the current mass transit line, especially on Ratchadapisek and Rama 9 Roads while approximately 27% or more than 3,760 units are located no more than 200 meters away from the BTS or MRT stations”. He added that there approximately 42% of units are about 1 km away from the mass transit lines selling at an average price of THB51,500 per square meter or less than THB3 million baht per unit.
The average take up rate of units launched in Q1 2012 is approximately 65%, the highest in the past few quarters. This is because many new projects from well know developers were launched this year combined with delayed decision-making of the buyers from last year. “Many people buy condominium units to reduce their commuting time to work as their houses are mostly in the suburban areas or outskirts of Bangkok. In addition, last year’s flood was a key factor in accelerating the buyers’ decision-making for a 2nd home for their families in case the flood comes again,” according to Mr. Surachet.
Colliers International reports that nearly 3,000 new condominium units were completed and registered in Q1 2012, bringing the total number for the entire Bangkok area to approximately 326,700 units. “Although most condominium developers are focusing on new launches along the current or new extension to the mass transit lines, according to our report, more than 207,800 units are located on the outskirts or syuburban Bangkok, not close to any transit line” added Mr. Surachet.
Another important trend in the market is the expansion of development and business in the Northern fringe of the city, towards Ratchadpisek Road and New Petchaburi Road. The recent rapid sell out of The Capital Ekamai - Thonglor by KPN Group Corporation with Colliers International as its sole agent, shows this trend clearly. “The official launch of The Capital Ekamai – Thonglor was on 27 February, 2012 and the project was completely sold out within a month although its selling price was the highest on New Petchaburi Road,” said Colliers’ Senior Manager of Project Sales & Marketing, Mr. Monchai Orawongpaisan.
Listed companies are still the main players in the Bangkok condominium market. Around 56% or more than 8,100 units of the newly launched projects belong to a listed company or its subsidiary. “Listed companies still take the biggest share of the Bangkok condominium market. However, they are also focusing more on suburban Bangkok where they had more than 2,500 units launched there, similar to the Northern fringe area” Mr. Surachet concluded.
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