Average selling prices of Bangkok condos will rise by “at least” 8 percent during 2018, after a similar 8 percent rise last year.
Bangkok condo prices now stand at THB 130,600 per sqm, rising from THB 121,000 per sqm during 2016.
Real estate firm Nexus Property’s Managing Director, Nalinrat Chareonsuphong, predicted that revised land and buildings taxes, due to come into force during January 2019, are unlikely to result in increases in land prices in Bangkok, and will allow condo prices to keep rising.
She said: “There are unlikely to be forced sales among landowners who feel pressured by the land and buildings tax.”
“If the tax is effective, landowners will have options and will not need to sell land plots.”
With rising land prices anyway as a result of limited land plots throughout the city, Bangkok condo prices are also predicted by many to rise during the next 11 months.
During 2017, Pathumwan and Ratchathewi saw highest the highest Bangkok condo price rises, with increases of 16 percent to THB 234,000 per sqm on the back of strong demand and limited supply.
For inner-city locations, the average selling Bangkok condo prices rose by 12 percent to THB 210,700 per sqm.
In suburban areas, Nexus said Bangkok condo prices rose by around 5 percent.
According to its market research, the number of new condos launched in Bangkok during 2017 was the highest in ten years. A total of 62,700 units in 128 projects were debuted into the market.
New condo supply that was launched during the year was 15 percent higher than the five-year average, Nexus reported.
Areas in Bangkok that saw the largest new supply were Phra Khanong-Suan Luang with 14,400 units; Phaya Thai-Ratchadaphisek with 13,200 units, and Thon Buri-Phetkasem with 8,900 units.
New supply in these three locations alone accounted for 58 percent of the total supply of newly launched Bangkok condos during 2017.
The number of unsold condos in the market at the end of 2017 was around 53,900 units, Nexus said without defining the worst-selling areas.
It reported that during 2017, the average sales rate of new condo launches in Bangkok was roughly 62 percent.
Phra Khanong-Suan Luang, Phaya Thai-Ratchadaphisek and Pathumwan-Ratchathewi saw the highest numbers of condos sold.
Over the past five years, Nexus noted that the market for Bangkok condominiums has expanded beyond the traditional downtown and midtown areas of the Thai capital.
It said the area where growth was highest was ThonBuri-Phetkasem, which saw a rise of 107 percent. This was followed by Tiwanon-Rattanathibet (76%) and Chaeng Watthana-Pak Kret (68%).
Nalinrat said the Bangkok property market during 2018 will see growth of more than 10 percent in the amount of new supply.
She added that foreign buyers and investors will continue to play a key role in terms of property long-term investments, and for rental returns.
She confirmed that Bangkok condo prices in the inners parts of the city are expected to rise by at least 11 percent, while prices of condominiums in outer Bangkok will increase by between 5 percent and 6 percent, providing average price growth of Bangkok condo prices of at least 8%.