Bangkok’s residential real estate market has split into two categories – a one-bedroom market mostly in the midtown area and a larger downtown market, according to a recent report by CBRE.
Both markets have fared very differently, said the report.
The larger market with prices at more than THB10 million has seen very few launches. It has also seen an increase in unsold units, though developers have made sales by offering incentives like furniture packages and “guaranteed yields”. Meanwhile, the smaller market has performed better with sales mostly fuelled by Thai buyers.
The total supply of condominiums in downtown Bangkok climbed 0.9 percent quarter-on-quarter and 12 percent year-on-year, with the addition of 606 units from five projects in H2 2010. A high-end off-plan condo unit in the area fetched an average asking price of THB156,813 psm, a growth of 0.2 percent quarter-on-quarter and 8.6 percent year-on-year. Meanwhile, completed high-end units saw an 11 percent year-on-year increase on their average resale price.
While the civil unrest in Thailand slowed new project launches, it did not cause prices to decline, with only a few panic sales, said the report.
Most of the future launches will involve one-bedroom projects in suburban, midtown and downtown areas and with only few launches of two- and three-bedroom units as developers attempt to clear its surplus inventory through sales and promotions, concluded the report.