Bangkok CBD: prices static, take-up down

Bangkok CBD
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The first Bangkok property research report covering Q2 has been published by real estate firm Edmund Tie & Company.

Focusing on Bangkok’s central business district (CBD), one notable fact revealed by the company was that average unit selling prices stood at THB 330,447 per sqm – a 32 percent increase compared with the same period during 2017 but no change from the prices seen during Q1.

A total of 852 units from four new projects in the Bangkok CBD were launched in Q2 2018.

The largest proportion of new condominium units launched in the Bangkok CBD during Q2 was in the Grade ‘A’ segment, representing 51.4 percent of total new launches.

Average take-up rates in the Bangkok CBD was recorded at 46 percent during Q2, lower than 58 percent in Q2 2017.

Supply during 2018 has been notably lower than recent years according to the real estate firm.

From 2012 until the end of 2017, average quarterly supply was as high as approximately 2,200 units.

Sukhumvit was the sole location for the new launches in the second quarter.

Average asking prices of resale condo units increased to THB 133,000 per sqm, up 1.1 percent from THB 131,500 per sqm during Q1 2018.

The average pre-sale rates of upcoming condominium projects in Bangkok’s CBD market stood at 46 percent during Q2 – substantially lower than the 81 percent seen in Q1 2018.

The firm said that the significant drop of supply in Bangkok’s CBD showed that developers are responding accordingly to weaker demand for residential units.

Although numbers showed it is possible to sell 100 percent of the units prior to, and after launch, the success rate has dwindled.

In non-CBD areas, supply remains high and often outstrips demand in some areas.

Although local and international investors continue to invest in the Bangkok CBD condo market, these investors are now more cautious when selecting a property.

Higher land prices combined with prudent buyers led to an increasingly challenging market for developers.

While pre-sales rates decreased, demand for upscale condominium units is expected to remain strong as buyers become more selective on the location, specification and price of units.

Condominium prices are expected to increase in the short- to medium-term, it concluded.

Andrew Batt
The author of this article is Andrew Batt, the founder and editor of Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.

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