According to Knight Frank Thailand Research, the overview of Bangkok’s condominium market remains bright. Given the attributes of the rail expansion and the lifestyle of modern people who increasingly desire convenience, in 2017, there were 62,751 new units entering the market, an increase from the previous year of 19%. The average annual total sales rate was around 76%, reflecting growth from the 74% seen in 2016. The most popular locations continue to be around the Light Green Line and the Blue Line. As for the CBD, Sukhumvit remains the most popular area, with around 11,000 new units coming into the market; this was followed by Wireless Road, Silom and Sathorn with 2,300 units, and Rama 4 with 817 units. For areas located outside the CBD, real estate development companies focused their attention on Rama 9-Ratchadapisek, Phaholyothin, Ladprao and Onnut-Bearing, with 19,000 new units entering the market.
When scrutinising sales of each area in 2017, it was found that the CBD and surrounding areas experienced average sales rates of 78% and 71%, respectively, while new suburban projects averaged an annual sales rate of approximately 80%. This serves as a good indicator of consumer confidence in the market. The selling price per square metre rose in all segments, particularly the CBD, which has limited plots of land suitable for the development of new projects. As a result, land prices soared, which is reflected in the sale prices. New projects in the CBD commanded an average sales price of 248,267 baht per square metre, while the area around the CBD was priced at approximately 131,521 baht per square metre, and new projects in the suburbs was at 79,871 baht per square metre, increasing from 2016 by 8.6%, 1.2% and 6.5%, respectively.
For Q1 2018, there were 12,563 new condominiums entering the market; new units enjoyed sales of about 55%. Over a half of them were launched in March 2018. The average selling price per square metre in the CBD and surrounding areas clearly contracted from Q1 of last year. This is because projects launched this quarter are located in less prominent areas, with lower grade specifications. However, the average sales price of a new unit in the suburbs grew to a record high at 110,353 baht per square metre, up 61% compared to Q1 2017 and up 38% compared to the entire 2017. This was due to the scarcity of land in the city, coupled with land prices that are steadily rising. Many operators are also increasingly turning their attention towards the periphery. In this quarter, one project had an offering price of more than 110,000 baht per square metre. As there were 6 projects launched in the suburbs, the average selling price per square metre in this area was pushed higher compared to past years.
This year, the market outlook of the suburban areas and around the CBD is that both locales have opportunities for growth; this is in terms of product, price and consumer response, especially for projects near the mass transit train lines or no more than 1 kilometre from the lines. Such areas should continue to receive heightened attention from large and mid scale property developers. From Knight Frank Thailand Research, it was found that there are several projects from leading developers that will be gradually launched in the CBD in the remaining quarters of 2018. It is worth watching the new projects’ pricing, seeing whether the average prices per square metre of condominiums in the CBD would adjust lower or higher than in 2017.
Number of Bangkok Condominiums from 2019 – Q1 2018
Supply, Demand and Accumulated Take-up Rate of Bangkok Condominiums from 2019 – Q1 2018
Average Asking Sales Price per sq.m. of Bangkok Condominiums, by Annual Supply, from 2009 – Q1 2018