Are people buying resale Bangkok condos? There is perhaps no bigger question for property investors holding assets in the Thai capital. New research from CBRE Thailand found that many buyers are now looking towards resale units instead of new condos due to skyrocketing prices in the city centre.
While most of the talk about the condo market has been centred on a predicted downturn due to new Bank of Thailand lending regulations, demand for resale Bangkok condos picked up in the fourth quarter of last year. That is due to the fact these units are proving to be more affordable than newly-launched projects, especially in prime locations where rising land prices have forced developers to bring more high-end projects to the market.
“Since the price difference between new launches and older, completed properties is now becoming so great that buyers who want a unit to live in are looking increasingly at existing developments as new developments are priced beyond most Thai buyers’ budgets,” Pornpimol Phuengkhuankhan, Head of Advisory & Transaction – Residential Sales Ad Hoc, CBRE Thailand, explains. “Buyers are increasingly willing to give up the prejudice against previously occupied condominium units in return for the ability to buy a larger unit for their money.”
What are buyers looking for in resale Bangkok condos?
Of course, the newfound demand for resale Bangkok condos isn’t an across the board increase. Buyers are selective when it comes to older units and will only consider properties that don’t require them to sacrifice on quality.
“There is a wide range of quality among existing developments with some old projects being as good as new properties while others were poorly built originally and/or have been poorly maintained,” Pornpimol states. “Buyers looking at existing buildings should do due diligence on the construction quality and condition of maintenance as well as gain understanding of the financial situation of the juristic office of the building in order to gain an insight into the probability that the building will be well maintained and appreciate in value in the future.”
According to CBRE Thailand, the financial status of the building’s condominium juristic office is another factor for people buying resale Bangkok condos. All co-owners jointly contract this office and it provides building maintenance as well as managing the common areas of the property. A condominium juristic office in good financial standing has the ability to make repairs and improvements as needed without needing to raise extra funds.