Bangkok city area condo prices are predicted to rise between 10 percent and 15 percent during 2018 despite around one in 12 Bangkok condominiums remaining unsold.
Throughout the city average condo prices rose by between 5 percent and 8 percent.
These forecasts come from real estate firm Colliers in its Bangkok Condominium Market Report covering the last three months of 2017.
During these three months, Colliers found the average take-up rate of all condominium units in Bangkok was approximately 56 percent, while more than 45,000 units are waiting to be absorbed by the market.
It reported that at the end of 2017 there were 553,900 completed and registered condo units registered In Bangkok.
Last year is said 58.650 new units were launched in the city, some 28 percent more than during the previous year.
Interestingly, after months of reports that developers had been focusing their attentions on the high-end of the market, Colliers reported that most condo projects launched during Q4 were priced between THB 50,000 per sqm and THB 100,000 per sqm.
This, it said, was suited with the purchasing power of Bangkok residents.
“Although many developers have sought to increase the number of high-end and luxury projects in their portfolios, they cannot abandon the mid- and low-level markets, which are the largest buyer groups in Bangkok.”
Colliers added that Bangkok’s condo market has continued to grow in 2017, and will continue to do so in the future given the many new mass-transit lines under construction.
Although Thai’s demand remains limited, and foreign buyer seek property for investment only, all developers should exercise caution when selling to foreign buyers.
Foreign buyers have become a new for Thailand property developers, especially for projects located in areas along Sukhumvit and Ratchadapisek, and in the Central Business District.
Colliers also revealed that during the past several years, average condo prices continued to increase by approximately 15 percent to 20 percent annually – and even higher in some locations.