Asking prices for property in downtown Bangkok rose by three percent in
the final three months of 2013, however concerns have been raised about
saturation levels in some parts of the Thai capital’s suburban
districts.
In its Bangkok Residential Marketview Q4 2013
report, published yesterday, real estate firm CBRE Thailand reported
that the majority of supply of condominiums in Bangkok is in the
midtown/suburban area and it mainly consists of one-bedroom units. It
noted that projects with the highest value are in the downtown area.
CBRE’s
research found there will be limited new supply in the downtown area.
It also expressed concerns about saturation in a number of midtown and
suburban locations in Bangkok, especially with the number of completions
scheduled over the next two years.
 |
| Source: CBRE Thailand |
Almost 13,000 new condominium units were completed in the
downtown and midtown/suburban areas during Q4 2013, with less than 10
percent of those units being located in the downtown area. This brings
the supply in the downtown and midtown/suburban areas to approximately
390,000 units.
The report noted there will be limited future
supply of larger two- and three-bedroom units in the most prime downtown
areas, which are popular locations with expatriates with the highest
housing rental allowances. With rising expatriate numbers, CBRE again
said that expatriate rental rates may start to increase.
Much of
the built but unsold inventory in the downtown area has been cleared and
with limited new supply, prices of buildings in the best locations are
rising.
CBRE is predicting a slower year for the midtown and
suburban sectors, due to many factors such as the amount of new supply
due for completion over the next two years, and concerns about how many
speculators bought into these projects. This, combined with weaker
end-user demand due to the on-going political crisis, increasing
consumer debt and a more cautious approach to developer financing from
the banks, will likely result in fewer new projects as developers focus
on selling and transferring titles of their existing inventory in
completed and yet-to-be-finished projects.
Read the full CBRE Bangkok Residential Marketview Q4 2013 report here.
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
Recent stories you may have missed:
Singapore home prices fell 0.9% in 2013: report
Bitcoin buyer snaps up Bali villa
Chinese in rush to sell Hong Kong homes
UK property tax loophole closed
If you have a property story you want us to publish email: andrew@propertyguru.com.sg