Many reports during the last year have highlighted how Thailand’s property developers have been turning their attentions to high-end developments, however new research indicates this may already be changing.
In its latest Bangkok Condominium Research Report covering Q2 2017, real estate firm Colliers International Thailand reported that the average price of new condominiums launched during Q2 2017 was around THB 120,000 per sqm, a decrease of approximately 8 percent from the past quarter.
Colliers attributed this decline to fewer high-end and luxury projects.
It added that average prices of condominiums in Bangkok has increased every quarter by around 3 percent to 5 percent depending on location, project concept and market position.
Colliers said most condominium units launched in Q2 2017 were selling between THB 50,000 per sqm and THB 100,000 per sqm, while only 10 percent or approximately 1,400 units, were selling at more than THB 200,000 per sqm.
It added that some condominium projects selling at more than THB 200,000 per sqm had a high take-up rate in 1Q 2017, but developers are still not confident in demand, so only three projects were launched in Q2 in this price bracket.
In the past several years it said many Thailand property developers had been focusing less on low-end market or condominium units selling lower than THB 1.3 million per unit.
This is related to bank mortgage loan for their buyers, because most buyers cannot get mortgage loans from banks, the firm noted.
Most buyers in this group still have other debts, and overall household debt was higher than bank expectations.