Mr. Phanom Kanjanateamta Managing Director of Knight Frank Thailand Limited stated that the Bangkok condominium market in 2018 set a record for the highest number of new project launches in 10 years, with approximately 65,000 new units entering the market, an 11% increase from the previous year. This brings the total supply of condominiums in Bangkok from 2009 to 2018 to around 500,000 units. According to research from Knight Frank's real estate research department, the third quarter of 2018 saw the highest number of new project launches at 25,000 units, while the final quarter of the year had about 17,000 new units entering the market, predominantly in suburban areas, especially along the extensions of the Green and Blue Skytrain lines. New supply in these areas accounted for 57% of all new units launched in the fourth quarter of 2018. Overall for the year, suburban areas, particularly along nearly all Skytrain extensions, continued to attract interest from developers, while the proportion of new supply in the CBD and surrounding areas was 18% and 33%, respectively. Key locations of interest for developers in 2018 included Sukhumvit Road from Asoke to Ekkamai, Phahonyothin along the Skytrain extension (Mo Chit-Khukhot), Rama 9-Ratchadapisek, Ladprao-Ramkhamhaeng, and Charansanitwong-Petchkasem.

 

Condominium Supply in Bangkok from 2010 to 2018

 

Source: Knight Frank Thailand

 

Condominium Supply in Bangkok by Zone in 2018

 

 

Source: Knight Frank Thailand

 

            Regarding sales, the average sales rate of new projects in Bangkok throughout 2018 was approximately 55%, with the best-selling condominiums primarily located in the CBD and surrounding areas, achieving sales rates of about 51% and 64%, respectively. In contrast, new condominiums in suburban areas had a sales rate of around 50%, which is considered good given the large amount of new supply entering the market in these areas. Popular locations among buyers included central Sukhumvit (Asoke to On Nut), southern Sukhumvit (Udomsuk to Bearing), Rama 9-Ratchadapisek, Phahonyothin (Chatuchak to Phahonyothin 52), and Thonburi. The overall average asking price per square meter for new units in 2018 was 150,641 THB, a 6% decrease from the previous year. The average asking price per square meter for new condominiums in the CBD and surrounding areas was 250,000 THB and 120,000 THB, reflecting decreases of 8% and 7%, respectively, compared to 2017. However, the average asking price per square meter for new units in suburban areas has been steadily increasing, reaching 85,000 THB per square meter in 2018, up 3%, 13%, and 20% from 2017, 2016, and 2015, respectively.

 

Cumulative Supply, Demand, and Sales Rate of Condominiums in Bangkok from 2010 to 2018

 

 

Source: Knight Frank Thailand

 

 

Asking Prices for New Condominiums in Bangkok from 2010 to 2018

 

 

Source: Knight Frank Thailand

 

            As for the real estate market outlook in 2019, it is expected to slow down due to the overall market situation, including the Bank of Thailand's housing loan regulations, rising domestic policy interest rates, and the global economic situation, which may impact purchasing power from abroad. Knight Frank's real estate research department anticipates that in the first quarter of this year, the average asking price per square meter is likely to increase from last year, supported by the launch of projects in various locations both in the CBD and surrounding areas. Additionally, in Q1 2019, the rate of ownership transfer is expected to rise compared to the same period last year, as buyers aim to complete transfers before the housing loan regulations come into effect on April 1, 2019.

 

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