New condos: Prices up 5%

The first research report focusing on what happened during the final three months has been published, and it has showed a 5.15 percent year-on-year price rise of selling prices of new condos n Bangkok’s central business district (CBD).

Edmund Tie & Company also said in its Bangkok Real Estate Times Q4 report that the condominium market is on an upward trend due to a continuing strong demand.

The outlook for Bangkok’s condominium market is more optimistic, the rea; estate firm said, as demand showed signs of improving.

Pre-sales at new projects in the CBD averaged 70 percent during Q4 2017, only slightly lower than the 73 percent registered in Q4 2016.

The average unit selling price for new condos increased to THB 259,076 per sqm during Q4 2017, which translates to an increase of 5.15 percent y-o-y according to the firm.

The total new condo supply during Q4 was 2,504 units from six new launches, up from 2,436 units in Q3 2017.

The average take-up rate of new condos in the CBD reached 70 percent in Q4, significantly higher than the 55 percent recorded during Q3.

The resale price index increased to 158 in Q4, up from 157 in Q3.

During Q4, some 31.7 percent of new condos launched in the CBD were in the super-luxury segment. The rest of the new condo units were in the luxury and Grade ‘A’ segment.

Bangkok’s Sukhumvit area saw for the largest share of new condos in Bangkok CBD locations, amounting to 2,047 units or about 81.7 percent of total supply in the CBD during the quarter.

Sathorn (12.9 percent) and Riverside (5.3 percent) ranked second and third.

Average pre-sale levels of proposed new condo projects in Bangkok’s CBD market stood at 70 percent during Q4, with some new condos being able to sell all units.

Average asking prices of resale condominium units increased to THB 131,100 per sqm, up 0.45 percent from THB 130,500 per sqm in Q3.

Looking forward, the firm said there are a variety of new projects due to come into the market during the first three months of 201.

With average take-up in the CBD standing at 63 percent, the condominium market during 2017 was upbeat with reasonably strong demand in most locations.

During 2018, Edmund Tie envisages cautious optimism, with the residential market expected to continue its growth.

It added that there will be some concerns from developers and investors regarding stocks that have been left unsold in the market, especially one-bedroom units in the luxury segment, as this sector begins to show signs of oversupply.

Thailand property developers will begin to consider other locations aside from Sukhumvit, where a larger portion of new condo units have already been built.

Chinese investors will continue to be the main source of international buyers in Bangkok, it said, and It is anticipated that there will be more international purchasers during 2018.