Condo supply to rise ahead of demand

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New data from Thailand’s Real Estate Information Centre (REIC) has indicated the supply of new condos in Bangkok this year will increase.

At the same time demand will rise, but at a slower rate than the number of new units coming to the market, suggesting the number of completed by unsold units throughout the city is likely to rise.

Spinning the news, Vichai Viratkapan, the Acting Director General of the REIC, told the Bangkok Post that the market will continue to grow, with improving figures across the board.

The total residential supply nationwide this year is forecast to rise by 3.4 percent to 265,500 units from 256,600 in 2017.

In Greater Bangkok, supply will rise by 4.3 percent to 154,200 units, comprising 79,900 condo units and 74,300 low-rise houses.

In Greater Bangkok, the number of new residential units being launched this year will total 117,100, up 2.8 percent from last year’s 113,926, which in turn was up 7.9 percent from 2016.

Based on analysis of the figures for supply and demand during the past five years, REIC said the absorption rate of residential units nationwide will improve to 39.8 percent, from 38.9 percent last year.

The absorption rates of condominiums and low-rise houses will rise to 47.9 percent from 46.5 percent.

The REIC also announced the top five locations in Greater Bangkok for the largest number of newly launched residential units last year.

This data seems to be in contradiction to other recent reports, but is an indication of some of Bangkok’s current most popular locations for property developers.

For condo, the largest number was in the Thonburi area (pictured) with 9,478 units, accounting for 13.6 percent. This was followed by Huai Khwang-Chatuchak-Din Daeng with 8,885 units (12.7 percent), lower Sukhumvit with 7,185 (10.3 percent), Nonthaburi with 5,586 (8 percent) and Phaya Thai-Ratchathewi with 5,198 (7.4 percent).

Most units in these locations were priced between THB 2 million and THB 3 million baht, it said.

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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