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Bangkok Condominium Market Q1-2012

As a result of flooding in the last quarter of 2011, most developers in Bangkok are focusing more in the first half of 2012 tn launch new projects with a variety of marketing campaigns to attract buyers. The flooding also increased condominium demand in the urban Bangkok area as it is more convenient for victims to commute.

The new Bangkok Town Plan remains a major concern for developers as most of them including the e three main real estate associations in Thailand oppose to the new town plan. The reason being that the latest draft of the new Bangkok Town Plan includes a regulation against building higher than 23 metres or bigger than 10,000 sq m on roads that are narrower than 16 metres. Most roads and sois in Bangkok are narrower than 16 m, therefore, if these new town plans are released in the future, developers cannot build high-rise condominium projects on land in small roads and sois of Bangkok which will also directly affect land prices. The Department of City Planning Bangkok Metropolitan administrator has still not finalised the new Bangkok Town Plan in the first quarter of 2012 as there has been many complaints from developers, landowners, and people to be affected by the new Town Plan.

Large, listed developers with a strong reputation dominate the condominium market and they are focusing more on the middle- to low-end market outside the urban Bangkok area. Most of the demand in Bangkok is for affordable condominium units with a selling price of less than THB3 million and all developers continue to target this group in 2012.

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