After roughly five quarters of political tension in Thailand, the Bangkok condominium market is starting to show signs of upturn. Beginning in Q4 2014, developers and consumers started to show more confidence in the market and seem to be looking forward to a positive Q2 in both the market and politics.
It’s expected that this year the market will be focused on higher-priced condominiums as purchasing power is still weak for the lower end of the market due to current high household debt levels and trouble securing mortgages. Listed developers are at the forefront of this, accounting for more than 60% of all the units that were completed in 2014. In 2015, this may grow by 5-10%, as developers predict a promising year ahead.
The areas in Bangkok that are expected to see the greatest benefits of the market upturn will be those around new BTS stations, specifically Punnawithi and Wutthakat. Both areas still have many units that are currently available and more that will be completed within the year as there is great anticipation of demand due to the new mass transit. The new lines will be positive factors for the market, as developers are seeking new locations due to climbing land prices.
As a result of increasing costs of land in Bangkok, new condominium developments launching in the Bangkok metropolitan area are expected to start at 250,000 THB per sq meter, however it is rare to find units that are currently available to ask for more than 200,000 THB per sq meter. Selling prices are also predicted to grow within the year, following the current trend of the steady 5-10% growth.
