Condominium Prices in Bangkok Surge Over the Course of a Year

Amid a year-long surge, condominium prices in Bangkok have continued their upward trajectory, with lower Sukhumvit witnessing the most substantial increase. Conversely, neighboring provinces experienced a decline in prices, primarily attributed to a surplus of unsold units in the market.

Condominiums are under construction along Rama 9 Road in Bangkok in June last year. (Photo: Pattanapong Hirunard) 

Vichai Viratkapan, the acting director-general of the Real Estate Information Center (REIC), reported a consistent year-on-year rise in the price index of new condo units in Bangkok for four consecutive quarters, starting from the first quarter of 2023.

"The condo price index in Bangkok is on an upward trend," he stated. "Lower Sukhumvit, within the 7.51-10 million baht per unit price range, witnessed the most significant increase."

Following lower Sukhumvit, the Thon Buri area saw prices rise in the range of 3.01-5 million baht, followed by the Lat Phrao-Wang Thong Lang-Bang Kapi zone within the same price range.

According to the REIC, the price index of new condo units available in Greater Bangkok (encompassing Bangkok, Nonthaburi, and Samut Prakarn) rose by 2.7% to 154.3 in the fourth quarter of 2023 compared to the corresponding period in 2022.

The driving force behind this increase was the price index of condo units in Bangkok, which saw a 3.5% rise to 157.3. However, when compared to the third quarter, there was a marginal decline of 0.5%, attributed to developers offering year-end campaigns to boost sales.

Vichai highlighted a contrasting trend in the price index of condo units in Bangkok's neighboring provinces, Samut Prakan and Nonthaburi, which witnessed a year-on-year drop for five consecutive quarters since the fourth quarter of 2022.

"The decrease is primarily due to a surplus of unsold units from projects launched before 2021, which had construction costs that had not been revised upward," he explained.

Developers in these provinces leveraged the previous construction costs to offer discounts and campaigns in the fourth quarter of 2023. Cash discounts and freebies were prominent sales strategies, accounting for 71.5% of the total.

The condo price index in Samut Prakan and Nonthaburi in the fourth quarter of 2023 registered at 141.2, indicating a 0.9% year-on-year decrease and a 0.2% decrease from the third quarter of 2023.

"The condo price index in these provinces has been declining consecutively for five quarters, from the fourth quarter of 2021 to the fourth quarter of 2022," Vichai remarked.

The Muang Samut Prakan-Phra Pradaeng-Phra Samut Chedi zone, within the 1.01-1.5 million baht per unit price range, experienced the most significant decrease, followed by Muang Nonthaburi-Pak Kret and the Bang Phli-Bang Bo-Bang Sao Thong zone, both within the 2.01-3 million baht price range. These areas, marked by intense competition, continue to have a reasonable number of unsold units available.

Source: Bangkok Post