FIRST WITH THE NEWS: Condo prices increased throughout Bangkok during the first three months of 2018, and is set to continue with stronger demand from domestic and international buyers and investors.
Average new unit selling prices in the four new developments launched during Q1 increased to THB 330,447 per sqm – a whopping 41.7 percent rise compared with the same three-month period last year.
That’s according to Edmund Tie & Company, the first real estate company to publish research covering the opening quarter of the year.
In its Bangkok Property Times report, the firm reported that total new condominium supply during Q1 2018 was 623 units, a decrease from 1,969 units in Q4 2017.
This was a decrease of 68.3 percent in total new launches quarter-on-quarter.
Average take-up rates of newly launched condominium projects in the CBD area of Bangkok reached 81 per cent in Q1 2018, higher than the 70 percent seen during Q4 2017.
Unsurprisingly, given the prices data, the agency said there was a strong demand for upscale condos, especially in the Central Lumpini area with developers selling up to 100 percent of their units shortly after unveiling the new condo projects.
In its outlook, the real estate firm said that following the encouraging sales during Q1 2018, it expects sales momentum in the Bangkok condo market to continue.
“There is keen interest from domestic and international investors looking to participate in the CBD condo market in Bangkok, and prices are set to climb further.”
In conclusion, it said that the main challenge for property developers will be increasing land prices, as there are regular new records for land prices.
“Land in Bangkok’s CBD will continue to escalate in price as the availability of land parcels becomes increasingly challenging.”