Market View Of Bangkok Residential Sales (bangkok Condo Sale)
The majority of condominium sales have come from Thai nationals not just looking to be end users but also to be buy to rent investors
. The growing numbers of Thai buyers reflects the improvement in local consumer confidence.
The biggest surprise for many people this quarter is that generally prices did not fall in fact it was in many cases the opposite is the case where prices in some recently completed projects actually rose. There were a limited number of new launches of two and three bedroom units. Developers are almost all focusing on new launches of one bedroom units. The amount of unsold developer inventory in recently completed projects and projects to be completed in 2010 together with resales prior to completion will slow the launch of new projects for 2 and 3 bedroom units downtown. Developers are going to focus on smaller units to keep the total price down but there appears to be having been a move away from studios to one bedroom units.
There was a significant increase in numbers of new projects launched in peripheral areas and in many cases there were strong sales.
During Q4 2009, there were 71 projects being marketed in the downtown area of Bangkok, of these 19 projects have been sold out. The average achieved re-sale price of units in completed upscale and above units increased by 5.4% Y-O-Y.
The majority of new supply in Q4 consisted of 1 bedroom units followed by two bedroom types and studio.
In Q4 2009, the overall occupancy rate increased by 1.6% Q-o-Q to 74.2% in this quarter.
The number of newly launched units in peripheral areas has increased to 7,441 units from 494 units last quarter. Most of the newly launched units in this quarter
were located in Pinklao accounting for 36%.
The amount of new supply due to be completed in 2010 means that the stress test will continue for larger units. We will see if developers are able to sell their unsold inventory and if speculative buyers can resell units where they do not want or are unable to make the final payment. The progress on these sales will determine both price levels and when we will see an increase in new launches.
The growth in the number of Thai buyers is re-assuring and it will be the appetite of Thai purchasers to buy into buildings that are being completed that will determine the course of the Bangkok condominium market.