Lumpini Wisdom indicates that real estate operators are confident in the market's recovery, launching new projects in Bangkok and its vicinity in January 2022, totaling 7,450 units. This marks a 441% increase in both condominiums and residential houses compared to the same period in 2021, with a total value of 27.513 billion baht, up 274% from the same period in 2021.

Mr. Prabhanasak Raksaiwan, Managing Director of Lumpini Wisdom and Solutions Co., Ltd. (LPN Wisdom or LWS), a research and consulting firm for real estate development under L.P.N. Development Public Company Limited (LPN), discussed the launch of condominium and residential house projects in Bangkok and its vicinity in January 2022. He noted that real estate operators launched a total of 7,450 new units in January 2022, a 441% increase compared to the same period in 2021, with a total value of 27.513 billion baht, up 247% from the same period in 2021.

“The increase in project launches in January 2022 compared to January 2021 is a result of real estate operators having delayed their plans to launch new projects in late 2021 due to the outbreak of the new coronavirus variant 2019 (COVID-19), particularly the Omicron variant. Additionally, January 2021 was a period of COVID-19 outbreaks, resulting in fewer new project launches. Coupled with a decrease in available inventory in the market, operators needed to accelerate new project launches to stimulate sales and increase market supply,” Mr. Prabhanasak stated.

The new project launches in Bangkok and its vicinity in January 2022 included 7 residential condominium projects totaling 5,635 units, representing a 1,242% increase compared to January 2021, with a total value of 18.532 billion baht, up 435% from January 2021. The average sales rate at the time of project launch was 20%, higher than the average sales rate of 8% at the time of launch in January 2021. This launch of residential condominiums is comparable to the units launched in January 2019, prior to the COVID-19 outbreak, with the highest price range for newly launched condominiums being 2-3 million baht, accounting for 42.2% of all condominium project launches.

Meanwhile, the launch of residential house projects in Bangkok and its vicinity in January 2022 included a total of 8 projects, with 7 projects priced below 10 million baht and 1 project priced above 10 million baht per unit. A total of 1,815 units were launched, representing an 89% increase compared to January 2021, with a total value of 8.981 billion baht, up 101% from January 2021. Detached houses priced below 10 million baht had the highest number of units launched and value compared to twin houses and townhouses, with an average sales rate at the time of project launch of 10%, similar to January 2021.

From the compilation of new project launch plans by real estate operators listed on the Stock Exchange of Thailand (SET), 17 companies in 2022 found that these 17 listed real estate companies plan to launch no less than 329 new projects in Bangkok and its vicinity, with a total value of approximately 438.12 billion baht, of which no less than 60% are residential projects.

“Real estate operators are beginning to feel confident that the real estate market will recover in 2022 and that it has passed its lowest point in 2021. Additionally, the projected economic growth rate for 2022 is expected to be between 3.5-4%, according to forecasts from the Bank of Thailand and the National Economic and Social Development Council. This has led operators to gradually invest and bring projects that were delayed in 2021 back into the market in 2022 to boost sales and replace dwindling inventory,” Mr. Prabhanasak concluded.