Bangkok condo prices were still rising during the first three months of the year, albeit at slower rates than in recent years.
According to real estate firm Colliers in its latest research, the average price of new condominiums launched during Q1 2018 was around THB 133,000 per sqm – a small increase of 3 percent from the previous quarter.
This, is said, was due to fewer high-end and luxury launches.
Bangkok condo prices at projects close to mass-transit networks were already reaching prices in excess of THB 250,000 per sqm, it added.
“The major factor directly affecting new condominiums in Bangkok is the many second-hand units that are still available with lower prices, so new and second-hand units in the same location are competing for sales.”
Land prices also became a major factor affecting condominium prices in the quarter, Colliers reported.
There were approximately 14,050 units newly launched in the first quarter of 2018, total project value is about 54,636 million THB, dramatically higher than the number of newly launched units in 1Q 2017 around 35%, as well as the highest in the past few years.
The significant increase in the number of newly launched units was due to Thailand’s overall economic situation in 4Q 2017 showed positive trends, demand in the condominium market increased.
Approximately 70 percent of the 14,050 new condominium units launched during Q1 were in suburban areas of Bangkok, outside existing mass-transit routes but close to under-construction lines.
In summary, Colliers said that the total number of new condominiums that will be launched during 2018 may be not dramatically higher than in 2017, at around 60,000 units, but that will also depend on consumer purchasing power during the rest of 2018, as well as the general economic situation.