Bangkok condo market keeps suffering from weak sentiment
Bangkok’s condominium market, which had great appeal to foreign buyers before the Covid-19 pandemic struck, saw a “modest improvement” in 2021, but the overall sentiment remained weak.
The main reason is a continued lack of foreign buying power, according a newly released report by real estate group CBRE on the residential market in Thailand’s capital.
The condominium market has been “directly affected” by the pandemic due to the impact on Thailand’s economy, customer confidence, spending power and the oversupply of units, the report said.
The situation was compounded by the lack of foreign buyers, an important component of the downtown market, who have not been able to visit to view and buy units or did not have sufficient confidence to buy off-plan remotely as some had done in the past, it added.
Over 9,000 new units hit the market in the fourth quarter 2021
In the last quarter of 2021, there was a slight improvement in the condominium market with some newly launched projects in downtown, midtown and suburban areas. Overall, 9,182 new units came on the market in Bangkok, seven per cent more than in the same quarter of the previous year.
Nevertheless, the overall condominium market sentiment in the fourth quarter 2021 did not fully recover. Several projects were postponed or suspended due to various factors, such as financial feasibility, project repositioning or waiting for market improvement.
This can be seen in several unfinished high rise projects in Bangkok’s central business district where construction has come to a complete halt since many months. The off-plan sales rate in downtown dropped 6.5 per cent in the fourth quarter 2021 as compared to the last quarter of the previous year.
Developers focus on cheaper midtown and suburban projects
In an outlook for 2022, CBRE expects another “slight improvement” in the condominium market and a “gradual increase” in the number of new projects in the Bangkok downtown area. However, many listed developers announced their 2022 plans to focus more on developing condominium projects in the midtown and suburban area and other provinces in Thailand
“We believe that the downtown condominium market will continue to be relatively quiet when compared with the midtown area where developers can offer products at a lower price range that better matches current demand,” the report said.
Bangkok’s condominium market, which had great appeal to foreign buyers before the Covid-19 pandemic struck, saw a “modest improvement” in 2021, but the overall sentiment remained weak. The main reason is a continued lack of foreign buying power, according a newly released report by real estate group CBRE on the residential market in Thailand’s capital. The condominium market has been “directly affected” by the pandemic due to the impact on Thailand’s economy, customer confidence, spending power and the oversupply of units, the report said. The situation was compounded by the lack of foreign buyers, an important component of the downtown...
Bangkok’s condominium market, which had great appeal to foreign buyers before the Covid-19 pandemic struck, saw a “modest improvement” in 2021, but the overall sentiment remained weak.
The main reason is a continued lack of foreign buying power, according a newly released report by real estate group CBRE on the residential market in Thailand’s capital.
The condominium market has been “directly affected” by the pandemic due to the impact on Thailand’s economy, customer confidence, spending power and the oversupply of units, the report said.
The situation was compounded by the lack of foreign buyers, an important component of the downtown market, who have not been able to visit to view and buy units or did not have sufficient confidence to buy off-plan remotely as some had done in the past, it added.
Over 9,000 new units hit the market in the fourth quarter 2021
In the last quarter of 2021, there was a slight improvement in the condominium market with some newly launched projects in downtown, midtown and suburban areas. Overall, 9,182 new units came on the market in Bangkok, seven per cent more than in the same quarter of the previous year.
Nevertheless, the overall condominium market sentiment in the fourth quarter 2021 did not fully recover. Several projects were postponed or suspended due to various factors, such as financial feasibility, project repositioning or waiting for market improvement.
This can be seen in several unfinished high rise projects in Bangkok’s central business district where construction has come to a complete halt since many months. The off-plan sales rate in downtown dropped 6.5 per cent in the fourth quarter 2021 as compared to the last quarter of the previous year.
Developers focus on cheaper midtown and suburban projects
In an outlook for 2022, CBRE expects another “slight improvement” in the condominium market and a “gradual increase” in the number of new projects in the Bangkok downtown area. However, many listed developers announced their 2022 plans to focus more on developing condominium projects in the midtown and suburban area and other provinces in Thailand
“We believe that the downtown condominium market will continue to be relatively quiet when compared with the midtown area where developers can offer products at a lower price range that better matches current demand,” the report said.
