Demand high for Bangkok condo units

Poomipak Julmanichoti, managing director of the consultancy Plus Property Co, said despite the take-up rate
averaging only 68% in the first half of 2014, slightly less than the 70% rate of the past two years, it was still satisfactory and reflected relatively healthy purchasing power and consumer confidence.

“The condo market in these final four months is expected to see a very good trend, as seen from our resale condo event in June, where sales surpassed the target,” said Mr Poomipak. “The only negative factor today is the global situation.”

He said gloomy property market sentiment in the first quarter prompted a freeze on sales activities at many projects. But sentiment picked up in the second quarter once the political situation settled down.

The company sells three resale condo units a day, up from three every two days during the political turmoil and two a day last year.

Thong Lor, Phrom Phong and Ratchathewi see the highest demand for resale condos, while units at the 185 Rajadamri project commands the highest price per square metre at 340,000 baht.

During the first half, 94,718 condo units at 168 projects were offered in Bangkok, newly launched between 2012 and the first half of this year.

Of this number, 35% were completed units, 35% will be finished between now and the end of next year and the rest will be ready starting in 2016.

All of this supply is expected to be absorbed within a year.

Average price per sq m rose by 7%, from 88,000 baht at the end of 2013 to 94,000 baht in this year’s first half.

Units in high-rise buildings, defined as having more than eight storeys, had a higher average price than those in buildings with eight storeys or less — 104,000 and 67,000 baht, respectively.

“Average condo price per sq m
neared 100,000 baht during the period, a price that many people considered too high in recent years,” Mr Poomipak said. “But with land and construction costs soaring each year, now it’s become acceptable.”

The skytrain stations with the highest price per sq m in their neighbourhoods were Ratchadamri (270,000 baht); Ratchathewi and Phloenchit (220,000 baht each); and Phrom Phong and Surasak (200,000 baht each).

The central business district saw the highest take-up rate at an average of 74%, with the Silom-Sathon-Rama IV area on top at 84%, followed by Siam Square-Ratchathewi-Phaya Thai (74%).

The next most-popular zones were northern and eastern Bangkok, each with an average take-up rate of 68%.

The highest in northern Bangkok was the Ngam Wong Wan-Chaeng Watthana area at 80%, while in in eastern Bangkok it was in Kaset-Nawamin/Ram Intra, also at 80%.