In the first half of 2019, data compiled by the research department of Colliers International Thailand revealed that approximately 45 new condominium projects were launched, totaling 18,075 units with a combined investment value of around 120.302 billion baht. This represents a decrease of about 4,486 units or 19.9% compared to the same period last year. The data indicates that in the first quarter of 2019, developers focused on clearing existing stock of completed units to allow customers to transfer ownership before the Bank of Thailand's LTV measures came into effect, resulting in fewer new project launches. In the second quarter, during the first two months, developers continued to hold off on new launches, primarily waiting for clarity from the new government post-election before gradually introducing new projects in June, the last month of the second quarter. In June alone, the supply of new condominium projects reached 5,100 units, accounting for 52.94% of the total new launches in the second quarter, which totaled approximately 9,632 units. Despite facing numerous negative factors, developers felt the need to gradually launch new projects, as delaying them until the second half of the year could pose challenges for them. Additionally, we observed that foreign purchasing power, particularly from Chinese investors, remains strong, as evidenced by several developers continuing to market new condominium projects, including those not yet officially available for Thai buyers, to Chinese investors. However, since the second half of 2018, we have noticed a declining trend in foreign purchasing power, with Chinese investors focusing on projects located in prime areas such as Rama 9 - Ratchada or central city locations, at reasonable prices, and projects that still offer good profit potential. Field observations indicate that many new projects launched in the first half of the year still attracted significant interest from foreign investors, especially Chinese buyers, facilitated by agency referrals. When analyzing the data by area, the top 10 districts for new condominium launches in Bangkok during the first half of 2019 are as follows:

Top 10 Districts for New Condominium Launches in Bangkok in the First Half of 2019

Source: Research Department, Colliers International Thailand

           From the data, the supply of new condominiums launched in Bangkok during the first half of 2019, totaling approximately 18,075 units with a combined investment value of around 120.302 billion baht, indicates that Bueng Kum district had the highest number of new condominium launches at approximately 2,461 units, with a development value of about 2.2 billion baht. Following closely was Huai Khwang district with around 2,119 units and a development value of approximately 18.87 billion baht, and Phra Khanong district with about 1,315 units and a development value of approximately 6.81 billion baht.

           The data also shows that for each BTS and MRT station, the focus on condominium launches in the first half of 2019 was significant, with developers showing interest in developing condominiums along the current BTS line, totaling approximately 7,403 units, accounting for 40.95% of all new condominium launches in the first half of the year. Additionally, around 3,094 units were along the MRT line, representing 17.10%, and approximately 7,578 units were along the lines under construction, accounting for 41.95%. It was found that developers focused on new condominium projects around the BTS Punnawithi station the most in the first half of 2019, with about 1,161 units, followed by around 1,148 units around the BTS Ekkamai station and approximately 1,025 units around the MRT Rama 9 station. Most of these projects were developed by large companies listed on the stock exchange, as land prices around BTS and MRT stations have risen significantly, making it difficult for medium to small developers to compete. Consequently, medium to small developers have shifted their focus to developing new projects in secondary locations or along new MRT lines currently under construction.

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