Real estate firm Nexus Property Marketing has revealed its prediction that the residential property market in Bangkok will continue growing at a steady pace.

It said that new supply in the condominium market will likely add 50,000 units – with a rise of at least 7 percent in prices. It said that inner-city condos will see a higher increase in prices than the suburban market.

Supply

During 2015 there were a total of 53,500 condominium units from 111 projects launched in Bangkok, resulting in the total number of condominium in the market rise by 13 percent from 2014 to 447,000 units. The growth rate of condominium supply during the past five years has been approximately 22 percent per year.

During the past two years growth was slowed but, according to the firm, represented a good sign of market adjustment to suit the overall economic and market situation.

The top three locations where new supply rose during the previous year were, in orderm Phra Khanong – Suan Luang, Tiwanon – Rattanathibeth and Phetchakasem – Thon Buri. All of these three zones are along an extension line of the mass-transit network.

Demand

For condominium demand average sales of condominiums that were newly launched in the market was 59 percent in 2015. Sales of the existing condominiums in the market totaled 54,000 units last year, and accumulative sales of condominium totaled 393,000 units which represented an overall sales rate of 89 percent, the firm noted.

Price

Average condominium prices continued rising with an increase of up to 10 percent from THB 96,000 per sqm to THB 106,000 per sqm in 2015, particularly for the inner-city condominium market. This was mainly due to high land costs and products which are in the premium grade category.

For new projects launched in those three locations mentioned above along an extension line of the mass-transit line, selling prices were approximately between THB 68,000 per sqm and THB 76,000 per sqm.

Source: Thailand Property