Bangkok Condominiums Market Remains Healthy
The demand for condominiums either for investment or own use continued to increase in the Bangkok CBD and peripheral areas such as Ratchadapisek Road, Paholyothin and outer Sukhumvit Road.
As a result of increasing demand, changing lifestyles among the new generation, rising oil prices and construction costs, the prices of condominiums in Bangkok have been rapidly increasing by 20-50% over the past three years.
The supply of condominiums on the market totaled 43,940 units in the first quarter of the year. The number of freehold condominiums increased by 1,062 units with eight new condominium projects completed said the survey. Leasehold totals remained the same as in fourth quarter of the year.
The vacancy rate increased slightly among both grade A and grade B condominiums by 2.4% and 1.3% respectively, with the occupancy rate declining slightly from 90.5% in fourth quarter of the year to 87.9% in this quarter. This was due to the number of new units completed where owners were still decorating units.
Eight freehold projects were completed during the quarter. These included three low-rise projects developed by Sansiri: Sathorn Plus by the Garden on the main Yenakard Road, with 70 units; Sathorn Plus on the Pond in the same area, with 77 units; and The Lanai Sathorn on Yenakard Road Soi II, with 34 units.
Other developments included: Silom Grand Terrace on Soi Saladaeng, developed by Metro Star Property with 240 units; Supalai Oriental Place on Suan Plu, being developed by Supalai with 300 units; and another two projects from Noble Development: Noble 09 Ruamrudee on Ruamrudee Road with 39 units, and Noble Ora on Sukhumvit Soi 55 with 223 units.
Within the next three years, future supply will consist of 75 projects worth 15,400 units. Eight new projects, with 1,751 units, were launched in this quarter; Noble Ambience Sarasin, a low-rise building on Sarasin Road; Noble Ambience Ruamrudee, a high-rise building on Ruamrudee Soi III; VOGUE@Siam, a high-rise building on Petchaburi Road; One Siam, a low-rise building on Rama I; The Clover Thonglor, consisting of five low-rise buildings on Sukhumvit Soi 55/18; Emporio Place, two high-rise condominiums plus one home/office building on Sukhumvit Soi 24; One Thonglor Station, a low-rise building on Sukhumvit Soi 40; and One Sukhumvit 67, a low-rise building on Sukhumvit Soi 67.
The number of occupied freehold condominium units totaled 36,833 units (87.9% of the condominium stock), an increase of 352 units from the previous quarter reported the survey. The number of occupied freehold condominiums increased by approximately 16,399 units, from 20,921 recorded in the previous quarter.
Over the past five years, the number of occupied freehold condominiums increased by approximately 16,399 units to 36,883 units at the end of first quarter of the year, a rise of approximately 76.3%.
The average price for grade A completed condominiums increased in the first quarter of of the year in all areas, but especially in Sukhumvit. The Sukhumvit area had an average price increase of 14% while Silom/Sathorn and Central Lumpini increased by 5%.