Buying a Condo in Bangkok, is it an Increasing Trend?
Unless you’ve been hiding in a cave these past few years, you probably know that the Bangkok condo market has grown into a massive billion-dollar industry that rivals its Asian counterparts. There’s no denying then that condominium living has transformed the lifestyle of Thais and expatriates in the city from those residing in the Central Business District (CBD) to the city’s suburbs.
Demand and Supply Fundamentals
The past year has had impressive new condominium launches with an estimated 65,000 units added in the market. This keeps property analysts and developers very positive at the start of 2011 since demand for high-rise living has surged to impressive levels. The take up rate for newly launched projects in the past year may have plunged to 44.3 percent in the fourth quarter of 2010 (4Q10) down from 68.7 percent in 1Q10 but this is still well in the acceptable levels of the market.
It must be noted too that total supply of more than 29,000 condos in Bangkok in 4Q10, is the highest in four consecutive quarters representing both the rise in urban and suburban Bangkok condominium supply. This explains why it may take until 2Q10 before the existing inventory is captured by local and foreign buyers.
The demand figures (take up rates) are primarily attributed to Thai buyers who want to experience the benefits of condominium ownership. Supply is still highly concentrated along mass transit lines that make it very accessible for property buyers in Bangkok to reach to their workplaces and other destinations.
Pricing and Housing Loans
In terms of prices, condominiums remain attractive to buyers with the most expensive units in the CBD area in the premium category hovering at 179,500 baht in 4Q10. The prices in the City Fringe area continue to attract more buyers with the addition of new supply especially along in the new extension line of the BTS.
With an estimated 30,000 units to add in the existing condominium supply in the city, Bangkok Condo Finder expects the growth in demand to linger within the year especially in suburban areas where lower mid-range buyers are concentrated.
If you’re interested in finding a condo in Bangkok, let Bangkok Condo Finder help you in your search.