Mixed messages for Bangkok condo prices

The real price and direction of new Bangkok condo projects appears to be up in the air right now, with various surveys reaching vastly different conclusions.

Prasert Taedullayasatit, the President of the Thai Condominium Association and Chief Executive of leading property developer Pruksa, said that most of the 150,000 Bangkok condo projects expected to launch in the next two years will focus on the middle- and upper-income sectors with prices of between THB 100,000 to THB 300,000 per sqm.

Last week real estate firm Colliers International Thailand reported that most condominium units launched during Q2 2017 were selling for between THB 50,000 per sqm and THB 100,000 per sqm, while just 10 percent, or approximately 1,400 units, were selling at more than THB 200,000 per sqm.

Prasert added: “Normally, when the purchase a residential property at a price of THB 1 million, most homebuyers will pay about THB 500,000 – or half the residential price – to buy home decorations and home appliances. This is the key to driving the country’s economy.”

Another survey by LPN Development Plc focusing on H1 2017 recorded 60 new condominium project launches in Bangkok and its suburbs with a combined number of 34,580 units. It estimated the second half of the year will see the launch of more than 17,000 units.

If anything is clear it’s that nothing is clear. Every piece of research is different and that’s because Thailand has no centralized online recording system for property transactions. The real transaction price declared at the Land Office when a sale happens is also difficult to ascertain independently.

What we do get are reports highlighting what has already happened three or six months ago, or what is predicted to happen. The latter mostly only involve the customers or developments of the company publishing the survey so need to be taken with that knowledge in mind.