Mr. Nattha Khahapana, Deputy Managing Director and Head of Knight Frank Phuket Office, Knight Frank Thailand Co., Ltd., a real estate agent, revealed that the direction of the Thai real estate market in the next six months, especially during the third quarter, is expected to remain stable. The number of new projects is still slowing down. while operators plan to launch more projects in the 4th quarter, which is believed to be a time to control the epidemic situation of COVID-19 and it is expected that the number of new projects launched for sale will not exceed 5,000 units The sensitivity of the economy to the epidemic remains an inevitable risk factor. In addition, the rising household debt problem may affect the purchasing power of the middle-lower market. including unresolved political stability
Affects the confidence of entrepreneurs who do not see a way to grow in investment. As a result, the economy may have to extend the recovery period, which will be slower than previously anticipated and has resulted in operators concern about the impact.
As for the project launch trend during the remainder of this year, 70% will be projects by large developers as the accumulated land is continually acquired pending development. They also have more cost management capabilities than small operators and can develop multiple land projects at the same time. In addition, if the country is fully vaccinated and the situation can be controlled. Including other factors that will be able to support, especially government measures to stimulate purchasing power in the country, which will have a positive effect on the domestic economy to recover faster.
According to Knight Frank Thailand’s research, the condominium market in the second quarter of 2021 showed that there were new condominium projects launched in Bangkok. A total of 2,659 units, a 33.8% decrease compared to the same period last year and a 26.8% decrease compared to the previous quarter. In addition, when compared to the period when the launch of new condominiums reached almost 25,000 units in the third quarter of 2018, it is considered that in the second quarter of this year there are condos. New openings declined nearly 90%. Most of the 1,915 new condominium units, or approximately 72%, were located in the suburbs. This is an increase of 22% from the previous quarter, remaining around the central business district. and in the heart of Bangkok
As for the price level of condominiums that entrepreneurs open up for sale, the starting price is lower than a million to the top million or about 30,000-80,000 baht / sq m, while small companies develop condominium projects at a price of 85,000 baht. /square meter or more However, no new super prime condominiums were launched in this quarter.
As for the demand for condominiums in the second quarter of 2021, which is the period when the condominium market opened for sale again, it was affected by the severity of the epidemic that occurred again in early April. and still unable to control the situation Consequently, only 993 new units were sold, representing a sales rate of 37.3%, but an increase of 22.9% compared to the same period last year and a 0.4% increase compared to the previous quarter. This is partly due to the fact that projects launched in this quarter recorded 100%, or approximately 730 units, or 73% of the number of units sold in the quarter. The project is located in the suburbs and is the project of large operators. The selling price is not high, causing buyers who want to buy for self-stay and those who buy for investment to pay attention and take time to make decisions quickly. Most of the buyers are old customers who have returned to buy and have confidence in the reputation of the operators.
for the selling price situation It was found that the selling price of condominiums in Bangkok as of the second quarter of 2021 decreased in all areas compared to the previous quarter. The selling price of condominiums in the central Bangkok area was 240,609 baht/square meter, a decrease of 9.8% compared to the same period last year, or 4.2% compared to the previous quarter. The price of condominiums around the central business district was at 116,225 baht/square meter, down 21.1% compared to the same period last year. and decreased by 5.7% compared to the previous quarter, while
Condominium in the suburbs of Bangkok The asking price was at 64,390 baht/square meter, a decrease of 19.5% compared to the same period last year and 6.2% compared to the previous quarter.
However, the asking price in the second quarter has declined due to many completed projects. has brought the project to reduce the price to attract people who are really interested in buying Including free of charge for everything in the project is still something that entrepreneurs use in order to manage money to have liquidity in the business.
