Bangkok: new projects and prices down

new projects
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The Bangkok Metropolitan area saw 191 new projects launched during the first six months of 2018.

Although this was down on the 198 projects seen during the same period last year, arguable one interesting fact is the average number of units per project rose to 281 units from a 2016 average of 241 units per project.

Dr. Sopon Pornchokchai, the President of Thailand’s Agency for Real Estate Affairs (AREA) presented his latest data focusing on the real estate markets in the Bangkok Metropolitan region.

AREA has conducted surveys of all real estate projects launched since January 1994.

Other data from its latest survey discovered that most of 191 new projects launched during the first half of 2018 were housing projects (owner-occupied low-rise residences and condominiums).

The average price per new unit that was launched during the first six months was noted by AREA as being THB 4.38 million, significantly down from the THB 6.10 million recorded a year earlier.

AREA recorded prices of new projects in US dollars so currency fluctuations will be part of the decline.

It also noted that throughout Bangkok there were 1,443 existing projects with 20 or more units available for sale at the end of June 2018.

AREA predicted that 416 new projects with 100,921 new units will be launched by the end of 2018. This, it said, will be a decline of 12 percent, and also a 7 percent drop in the total value of all projects.

Dr. Sophon said: “Developers and financiers should pay high attention to develop or finance projects at present, so that supply would not be too high – otherwise, there might be oversupply in the future.”

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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