Ms. Risinee Sarikaputra, Director of Research and Consultancy at Knight Frank Thailand Co., Ltd., said that the condominium market in Bangkok experienced a total of 4,022 new condominium units launched for sale during the second quarter 2020. The number of new units for sale decreased by 73.2 per cent compared to the second quarter of the previous year, which had 14,988 new units launched for sale. Compared to the first quarter of this year, there was a decrease by 35.6 per cent, which had 6,246 new units launched for sale.
Of the condominiums launched for sale in the second quarter of 2020, 71 per cent were Grade C condominiums with a selling price below 80,000 baht per square metre, followed by 29 per cent of Grade B condominiums with a selling price between 80,000 to 100,000 baht per square metre. There were no new condominiums launched for sale that are priced over 100,000 baht per square metre. Most of the sales of new units were in the suburbs of Bangkok, accounting for 75 per cent, followed by sales of condominiums in the City Fringe area at 25 per cent. There were no new condominiums launched for sale in the Central Business District (CBD).
In terms of demand in the second quarter of 2020, the newly launched condominium market in Bangkok witnessed the effects of the Coronavirus, or Covid-19, outbreak more severely, resulting in the clear decrease in purchasing power. There were only 581 new units sold from a total of 4,022 newly launched units, reflecting the lowest sales rate in 10 years
The selling prices of condominiums in Bangkok during the second quarter of 2020 decreased in all areas, from the first quarter of 2020 as well as from the previous year. The average price of condominiums in the CBD was 267,000 baht per square metre, representing a decrease of 0.5 per cent compared to the first quarter, where the average price was 268,300 baht per square metre. The average selling price in the City Fringe area was 147,356 baht per square metre, reflecting a 1.5 per cent decrease compared to the previous quarter, which had an average price of 149,600 baht per square metre. The average selling price of condominiums in the suburbs of Bangkok was 80,000 baht per square metre, decreasing by 1.4 per cent compared to the previous quarter, which had an average price of 81,150 baht per square metre. The actual prices may be lower than the average asking prices by 7 to 10 per cent or by more than half, depending on the various promotional campaigns provided by different projects.
Ms. Risinee commented on the outlook of the condominium market in Bangkok, saying that the market continues to face challenges. The current Covid-19 situation appears to be improving, and entrepreneurs are starting to launch new condominium sales since May. They are expected to resume launching new condominium projects for sale over the remaining six months of this year. Also, it is expected that, in the second half of the year, there will be a new condominium supply of around 15,000 to 20,000 units while the number of new condominium units launched for sale this year will be around 25,000 to 30,000 units. The selling price per unit would be around 1.5 to 3 million baht, or 60,000 to 80,000 baht per square metre, which reflects a segment with the most demand. The buyers mostly demonstrate real demand, purchasing the units for their residences, but some are investors as well.