According to the real estate research department of Knight Frank Thailand, the overall condominium market in Bangkok during Q2 2018 performed well in terms of demand and pricing. However, new supply decreased by more than half compared to the previous quarter, as most developers plan to launch new projects in the second half of the year.

          In Q2 2018, a total of 8,894 new units entered the market, down 47% from the previous quarter. Nevertheless, the investment area preferences of developers this quarter clearly indicate a growing interest in areas around the CBD and suburban regions, as reflected by the increase in new units in these two areas by over 6.5% and 2.2%, respectively, compared to Q1 2018. The most popular locations remain along the extended BTS lines, particularly the light green, blue, and yellow lines. Areas such as Ladprao, Phaholyothin, Phetkasem, and Charan Sanitwong are filled with new projects launched simultaneously this quarter. Meanwhile, the CBD area of Sukhumvit continues to be the most favored by developers in Q2 2018, with two luxury projects launched in Asoke and Ekkamai, totaling 363 units. Other locations in the CBD did not see any official new project launches during this quarter.

Supply of Condominiums in Bangkok Q2 2016 – Q2 2018

 

New Condominium Supply in Bangkok by Zone Q2 2018

          In terms of sales, the average sales rate of these newly launched units is approximately 60%. The best-selling condominiums this quarter are primarily located in the CBD and suburban zones, with sales rates of about 70% and 50%, respectively. The most popular locations among buyers this quarter include Sathorn-Thapra, Rama 9-Ratchada, and Phaholyothin-Vibhavadi. Meanwhile, the overall asking price per square meter for new units in Q1 2018 was 147,800 THB, reflecting a 5% increase from the previous quarter, driven by new condominium prices in the CBD, which averaged 248,000 THB per square meter, up 16% compared to the last quarter.

Cumulative Supply, Demand, and Sales Rate of Condominiums in Bangkok Q2 2016 – Q2 2018

Asking Price per Square Meter of New Condominiums in Bangkok Q2 2016 – Q2 2018

 

          Looking ahead, the market situation in the near future requires close monitoring in the second half of the year, as several developers are ready to launch projects during this period. Forecasts indicate a high likelihood that new supply in the second half of 2018 will exceed 22,000 units. If this occurs, the total new supply for the entire year of 2018 will approach 50,000 units. Additionally, prices in the second half may break records for the past six quarters, as over 40% of the new supply will be located in the CBD.

Thank you for the information from www.knightfrank.co.th