Condo sales in suburban Bangkok reach new high

[webfact]

Special Report:

Condo sales in suburban Bangkok reach new high

BANGKOK: -- According to property experts, the average sales price of condo units in Bangkok's outer areas is set to soar by nearly 50 percent but condo supply in general will dwindle by next year.

The growing popularity of condominiums in suburban Bangkok is due to the expansion of the mass transit system from the central business districts to the suburbs and the safety from flooding which damaged many areas of Bangkok and other provinces in 2011.

The extension of the mass transit network, especially along the skytrain line from On Nut to Bearing, has fuelled growth in condo supply. Continual increases in condo prices were reported in six locations, which include Khae Rai-Lak Si-Ram Intra, Bang Sue-Nonthaburi, Ratchada (Lat Phrao-Makkasan), On Nut-Bearing, Bang Na-Suvarnabhumi and Taksin-Bang Wa.

SET-listed developer Sena Development Plc said condo prices in far-off locations rose from 68,000 baht per square meter on average in 2009 to 100,000 baht this year - an increase of 48% in four years.

Sales of condominiums grew by a staggering 151.8 percent year-on-year during the first quarter of 2013. Suburban areas contributed heavily to the recent growth of Bangkok's condominium market, accounting for 70% of new launches or 22,465 units. The Real Estate Information Center (REIC) predicted a total of 70,000-75,000 new condominium units would be added to the market in 2013, a record for the property industry.

The projection for new condominiums this year was higher than in the 1997 financial crisis, since condominiums are gradually replacing single housing units in some locations.

The center noted however that the condo supply will slow down next year as developers reduce projects. A number of government agencies have earlier warned that there is a risk of oversupply, as more projects are launched throughout the year.

Negative factors contributing to the decrease in condo projects include the labor shortage and the excessive amount of new condos being built this year. Condo supply has already reached a surplus in some areas with slowing sales amid high competition.


-- NNT 2013-10-23

[pomchop]

The tide comes in, the tide goes out. Some will buy high and sell low. Some will buy low and sell high. Some will get big loans and simply walk away when/if the market turns and you'll once again have lots of buidlings with lots of "owners" not paying maintenance fees and down down goes the property

The minute that everyone starts to think prices will never drop is when they usually drop. If we all had a crystal ball life would be so simple. I suspect that there are a lot of "flippers" in the market now...buying with the plan to never live there or rent it but to hold for a year and then make a big profit by flipping it to someone else...it is called the "bigger fool" theory that there will always be someone with greed in their eyes who will pay more than you paid. Having said that I sure wish I had bought up a few condos in Bangkok about 1998.

" the excessive amount of new condos being built this year. Condo supply has already reached a surplus in some areas with slowing sales amid high competition"

[ezzra]

Hogwash, the so called "property experts" are no more than property's mongering, fueling

a dormant market with their bombastic climes, I should know as I'm a multi properties owner

trying to rent or sale some my condos for the last 6 months and the market is saturated with

condos of all size, price and locations,, no way 50% price increase, if anything, the market

gone soft...

[bkk_mike]

Hogwash, the so called "property experts" are no more than property's mongering, fueling

a dormant market with their bombastic climes, I should know as I'm a multi properties owner

trying to rent or sale some my condos for the last 6 months and the market is saturated with

condos of all size, price and locations,, no way 50% price increase, if anything, the market

gone soft...

Location, Location, Location.

Wife has a flat near a Skytrain station, and apparently rental is becoming a problem (she's asking quite a lot for rental), but selling isn't. Lots of people still wanting to buy rather than rent.

On the other hand, she has another condo unit next to the airport link, and there we only get offers to rent, not buy.

The one next to the skytrain - the offers keep going up. She's almost at the point of accepting because the offers are getting too good to refuse...

[bangon04]

" A number of government agencies have earlier warned that there is a risk of oversupply, as more projects are launched throughout the year.

Negative factors contributing to the decrease in condo projects include the labor shortage and the excessive amount of new condos being built this year. Condo supply has already reached a surplus in some areas with slowing sales amid high competition."

Doesn't the last part of the article make a nonsense of the first part of the article???

The way I understand it, most developers are building one bedroom apartments, so there will be a shortage of larger 2-3 beds places. No shortage of studios/one bedrooms for sale or rent, as long as you like having a view of the wall/ bathroom opposite your window..

[bigbamboo]

" A number of government agencies have earlier warned that there is a risk of oversupply, as more projects are launched throughout the year.

Negative factors contributing to the decrease in condo projects include the labor shortage and the excessive amount of new condos being built this year. Condo supply has already reached a surplus in some areas with slowing sales amid high competition."

Doesn't the last part of the article make a nonsense of the first part of the article???

The way I understand it, most developers are building one bedroom apartments, so there will be a shortage of larger 2-3 beds places. No shortage of studios/one bedrooms for sale or rent, as long as you like having a view of the wall/ bathroom opposite your window..

Who could possibly want a view into their neighbour's bathroom?

[belg]

really? who wants to bet that this info comes from people with interest of selling their stuff.... hidden ad?

[ezzra]

Hogwash, the so called "property experts" are no more than property's mongering, fueling

a dormant market with their bombastic climes, I should know as I'm a multi properties owner

trying to rent or sale some my condos for the last 6 months and the market is saturated with

condos of all size, price and locations,, no way 50% price increase, if anything, the market

gone soft...

Location, Location, Location.

Wife has a flat near a Skytrain station, and apparently rental is becoming a problem (she's asking quite a lot for rental), but selling isn't. Lots of people still wanting to buy rather than rent.

On the other hand, she has another condo unit next to the airport link, and there we only get offers to rent, not buy.

The one next to the skytrain - the offers keep going up. She's almost at the point of accepting because the offers are getting too good to refuse...

Some of my condos are near BTS and main roads and priced very reasonably, still not many takers,

mostly tier kickers and low budget people...

[Bpuumike]

" A number of government agencies have earlier warned that there is a risk of oversupply, as more projects are launched throughout the year.

Negative factors contributing to the decrease in condo projects include the labor shortage and the excessive amount of new condos being built this year. Condo supply has already reached a surplus in some areas with slowing sales amid high competition."

Doesn't the last part of the article make a nonsense of the first part of the article???

The way I understand it, most developers are building one bedroom apartments, so there will be a shortage of larger 2-3 beds places. No shortage of studios/one bedrooms for sale or rent, as long as you like having a view of the wall/ bathroom opposite your window..

Who could possibly want a view into their neighbour's bathroom?

You'd be surprised!