Bangkok
Condominium Market
Supply
“Many developers are looking for new
locations for condominium development
projects. Therefore, the area along the Blue,
Orange and Green lines will become the most
interesting area for new condominium
development in 2018.”
Newly launched condominium units
from 1Q 2015 – 1Q 2018 by quarter
Demand
Higher confidence in 1Q 2018, so average
take-up rate in previous quarter higher than
past quarter.
Supply
Approximately 548,367 condominium units
are completed and registered in Bangkok.
Newly Launched Units
Approximately 14,050 units new launched in
the 1Q 2018, dramatically higher than in 4Q
2017 around 35%.
Price
The average selling price of condominium
projects launched during the past few years
increased by around 5-10% per year and will
continue to increase in 2018.
MARKET REPORT
BANGKOK CONDOMINIUM
1Q 2018
Forecast at a glance
Source: Colliers International Thailand Research
There were approximately 14,050 units newly launched in
the first quarter of 2018, total project value is about 54,636
million THB, dramatically higher than the number of newly
launched units in 1Q 2017 around 35%, as well as the
highest in the past few years. The significant increase in
the number of newly launched units was due to Thailand’s
overall economic situation in 4Q 2017 showed positive
trends, demand in the condominium market increased.
Approximately 70% of new condominium were launched
units in 1Q 2018 was located in Bangkok Suburban Area
outside existing BTS and MRT lines, but still located along
the under construction lines.
The number of condominium units that were completed and
registered at the Department of Land as of March 2018 were
approximately 548,367 units (excluded condominium units
are developing by National Housing Authority).
2 Market Report | 1Q Bangkok Condominium Market | Colliers Inter <
Most of all completed units are located in Bangkok Suburban
Area with around 63% of total completed and registered
units.
Some areas along new mass transit lines that are under
construction become the new hot locations which all
developers try to launch the new projects, especially the
area that are not far from Bangkok inner city area.
Total new condominium units launch in 2018 may be not
dramatically higher than from 2017, around 3-5% or at
approximately 60,000 units, but also depends on purchasing
power in the rest of 2018 and economic situation.
The new mass transit lines are a positive factor for the
condominium market, as many developers are looking
for new locations for condominium development projects.
Therefore, the area along the Blue and Orange and Green
lines will become new most interesting area for new
condominium development in 2018 and next few years.
The New Residence Buyer’s Confidence Index, compiled
from a survey by the University of the Thai Chamber of
Commerce, continued to increase from December 2017 (56)
to only 57 in March 2018, the higher in the past many months.
This was due to Thailand’s overall economic situation in 4Q
2017 showed positive trends.
The average take–up rate of condominium units in Bangkok
is approximately 75%, with more than 36,000 units that are
waiting to be absorbed by the market. Roughly, 54% of unsold
units are for sale at THB 50,001–100,000 per sq m which is the
prices that many projects launched in the past few years and
in 2017 have sold. Although many developers have sought to
increase the number of high-end and luxury projects in their
portfolios, they cannot abandon the mid- and low-level markets,
which are the largest buyer groups in Bangkok.
The average take-up rate of condominium units with the prices
less than THB 200,000 per sq m was approximately 58%, and
the rate of condominium units selling more than THB 200,000
per sq m was similar (61%). However, condominium units that
sold for less than THB 200,000 per sq m remain dramatically
high in number.
Foreign buyers have become a new target group of listed and
well-known developers in Thailand, especially for projects
located in areas along Sukhumvit and Ratchadapisek Roads
and in the central business district. However, some developers
can also sell units in projects located in areas along new mass
transit lines currently under construction to foreign buyers.
Some condominium projects from listed developers slated
for launch in 4Q 2017 was getting popular with many clients,
and were able to close their projects in the first day of presale
day, such as, Noble Ambience in Sukhumvit 42 from Noble
Development Plc and The Line Sathorn from Sansiri Plc. Both
projects are very unique in terms of locations, designs and
prices. The prices are not much higher than the market price.
Demand
Average take-up rate of new condominium
units launched by quarter
Source: Colliers International Thailand Research
Source: Colliers International Thailand Research
New mass transit lines that are under construction and the
limited available land plots in Bangkok prime area and the
area around existing BTS and MRT stations are the main
factor to raising land price in Bangkok. High land prices also
directly affected to the selling price of new condominium
units was launched in the past few years, so average selling
price of newly launched condominium were higher in every
quarter. But average selling price also depends on locations,
developers and projects concepts.
The average price of new condominiums launched in 1Q
2018 was around THB133,000 per sq m, a increase of
approximately 3% from the past quarter, because there
were less high-end and luxury projects. The average price
of condominiums in Bangkok has increased every quarter
by around 3-5% depending on location, project concept
and market position.
New condominium projects in the areas close to BTS
stations are already more expensive than THB250,000
per sq mand continue to increase every quarter. The
average selling price of condominium projects launched
during the past few years increased by around 5-10% per
year and will continue to increase in 2018. The major factor
directly affecting new condominiums in Bangkok is the many
second-hand units that are still available in the market with
lower prices, so new and second-hand units in the same
location will compete for sales. Land prices also became a
major factor affecting condominium prices.
