THAILAND FIRST: Bangkok property developers have resumed launches in the midtown and suburban condominium market after banks appeared to loosen lending restrictions during the second half of 2017, but unsold units remain a problem in some parts of the city.
This is according to real estate firm CBRE in its latest research report covering Bangkok’s property marketing during the first three months of the year.
CBRE reported that the total number of completed condominiums in the midtown and suburban areas of Bangkok increased to 507,456 units, an increase of 11.7 percent year-on-year.
It reported there were 14,666 newly launched units during the first three months, representing a yearly increase of 22 percent.
From a total of 110,175 units, CBRE estimated that around 73,000 (or 66 percent) under-construction units in the midtown and suburban areas have been sold.
The remaining unsold units, whether under-construction inventory or built inventory, is still a problem, it said.
When a real estate agency says anything remotely negative, buyers and investors need to take a serious note.
Developers must clear existing stock in to continue launching new projects.
“If we focus only on newly-launched condominiums in the midtown and suburban areas during Q1 2018, sales performance was 42.5 percent.”
“However, there were still some successful new midtown and suburban condominium projects launched during the quarter with high sales rates. This was due to location and reasonable pricing.”
“Of the 36 projects launched during the first quarter, eight projects achieved sales rates of more than 70 percent.”
“Only two projects from publicly-listed developers sold out within a short time.”
“These projects used affordable pricing strategies, offering units with average prices between 10 percent and 20 percent cheaper than comparable projects in the same area.”
CBRE said that it believes there are still opportunities for projects to perform well in areas where there is limited supply, and where prices are reasonable, matching buyer’s preferences.