Bangkok condo supply in Q2 sees sharp fall of nearly 80 per cent

[rooster59]

Bangkok condo supply in Q2 sees sharp fall of nearly 80 per cent

By THE NATION

 

 

There has been a sharp decline in the number of new condominium projects in Bangkok in the second quarter of 2020, according to a Colliers International Thailand survey.

 

 

The survey said only five projects were launched in the Bangkok area, offering 1,206 condo units worth Bt2.6 billion, 79.5 per cent lesser than the 4,674 units in the previous quarter. Net supply of condo units in Bangkok in the first six months of 2020 was only 7,086, 61.9 per cent lower than the 11,499 units in the same period last year.

 

The survey also revealed that the investment value in the condo market in the second quarter also dropped by Bt13.62 billion year on year. It estimated that the total condo supply in 2020 might not exceed 25,000 units, which could be the lowest in the last 10 years.

 

Colliers International said the reason behind this trend is that major developers are reducing the construction of new condominiums and switching to horizonal projects in rural areas, especially in the Eastern Economic Corridor.

 

“Many companies also revealed that they will not introduce new projects this year in order to dispose of unsold units in finished condo projects,” said the company.

 

“Furthermore, the current economic recession due to the impact of Covid-19 outbreak is not a suitable moment to debut a new project.”

 

Source: https://www.nationthailand.com/property/30390784

 

-- © Copyright The Nation Thailand 2020-07-05

 

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[ezzra]

What an utter rubbish, we have at least 4 giant condo projects in our mid Sukhumvit soi and half a dozen others in Sois near us, where do they the get their information from? morning cereal box?...

[saakura]

Around Soi Thonglor to Ekamai area and opposite side (Soi 36 to 40) there are about 10 mega size condos in various stages of construction. Total madness.

[RichardColeman]

would think people will be buying the soon to be heavily discounted old ones than expensive new ones anyway

[Pedrogaz]

3 hours ago, ezzra said:

What an utter rubbish, we have at least 4 giant condo projects in our mid Sukhumvit soi and half a dozen others in Sois near us, where do they the get their information from? morning cereal box?...

I does actually say "projects launched in Q2."

[shortstop]

7 hours ago, rooster59 said:

launched

What does this article mean by launched?

 

Open to investors but no construction?  Groundbreaking?   Continuation of projects already under construction?  Projects now ready for occupancy?

 

 

[Airalee]

4 hours ago, RichardColeman said:

would think people will be buying the soon to be heavily discounted old ones than expensive new ones anyway

Doubtful.  
 

Developers can cut prices to levels far below the resale units and still make profits.  They also aren’t emotionally attached to the units whereas an individual homeowner has the “I need to get ฿x,xxx,xxx” mindset.  It is also much easier for Thais to get financing on new units as developers have relationships with the lenders and are currently offering up to 110% financing.  Then, throw in the incentives offered by the developer such as “free” motorbikes, 2 baht of gold etc etc.

[rwill]

So they are only overproducing by 20% now instead of 100% last year.

[Destiny1990]

2 hours ago, Airalee said:

Doubtful.  
 

Developers can cut prices to levels far below the resale units and still make profits.  They also aren’t emotionally attached to the units whereas an individual homeowner has the “I need to get ฿x,xxx,xxx” mindset.  It is also much easier for Thais to get financing on new units as developers have relationships with the lenders and are currently offering up to 110% financing.  Then, throw in the incentives offered by the developer such as “free” motorbikes, 2 baht of gold etc etc.

I think he meant the developer his still owned unsold stock in an existing building.. Makes sense why build new condominiums if in existing skyscrapers there is still huge amounts of unsold units to be sold.

[from the home of CC]

6 hours ago, RichardColeman said:

would think people will be buying the soon to be heavily discounted old ones than expensive new ones anyway

nobody buys old that are from here and the west will be rightfully restricted to even land here..

[Airalee]

40 minutes ago, Destiny1990 said:

I think he meant the developer his still owned unsold stock in an existing building.. Makes sense why build new condominiums if in existing skyscrapers there is still huge amounts of unsold units to be sold.

OK....that makes sense.  I’m amazed that there are still condos being sold by developers in my area (Phra Khanong) where the buildings were finished 6-7 years ago.

[sanuk711]

12 hours ago, rooster59 said:

switching to horizonal projects in rural areas, especially in the Eastern Economic Corridor

That's a bit vague....... are they talking Khon Kaen ---Udon etc........or closer to BKK

 

[bkk6060]

 

 

Sopon Pornchokchai, the president of Agency for Real Estate Affairs, says there is 100,000 vacant completed condominiums in and around Bangkok.

 

The above is from a recent newspaper article.

Apparently 20,000 also in Pattaya.

 

Crazy that anything is being built.  And, the pricing has not been reduced much if not at all.

 

 

 

 

[Airalee]

2 minutes ago, bkk6060 said:

 

 

Sopon Pornchokchai, the president of Agency for Real Estate Affairs, says there is 100,000 vacant completed condominiums in and around Bangkok.

 

The above is from a recent newspaper article.

Apparently 20,000 also in Pattaya.

 

Crazy that anything is being built.  And, the pricing has not been reduced much if not at all.

 

 

 

 

That 100k certainly doesn’t bode well for investors who were considering buying for nightly/weekly Airbnb rentals.  Perhaps they should be focusing on attracting more retirees instead of wealthy tourists in private jets.

[A1Str8]

That's really a problem mate. Since the whole vast world is rushing to buy a condo in the cleanest city on the planet. 

[bkk6060]

13 minutes ago, sanuk711 said:

That's a bit vague....... are they talking Khon Kaen ---Udon etc........or closer to BKK

 

No.

The EEC is Chonburi, Rayong, etc.

Lots of plans for the area over the next 10 years.

[sanuk711]

13 minutes ago, bkk6060 said:

No.

The EEC is Chonburi, Rayong, etc.

Lots of plans for the area over the next 10 years.

Thanks bkk6060------ surprised I thought that area, had the same problem as BKK ....oversupply.

 

Then again it makes sense because I sold a hugh 3 B/R Condo on the beach down that way about 2 years ago..............so its bound to boom.......????

[3NUMBAS]

pandemic followed by submersion in water is not good odds for BKKs future

[soi3eddie]

On 7/5/2020 at 7:59 AM, shortstop said:

What does this article mean by launched?

 

Open to investors but no construction?  Groundbreaking?   Continuation of projects already under construction?  Projects now ready for occupancy?

 

 

I was wondering the same meaning of "launched". I suspect it means before any money has been invested or borrowed and before start of advertising or groundbreaking.

It would be good if the number (and value) of actual sales i.e. title transfers were released by the Land Department. They after all are the ones who would have the most up to date records of completed purchases.

 

With the oversupply of highly priced rabbit hutches in the city, along with the current situation, it's likely that there will be complete stagnation in the *new* condo market unless prices are reduced substantially. Anyone got a few million to invest right now?

[Redline]

At least 5 projects in my neighborhood