Sat, May 25, 2013 21:32:18 PM
Bangkok Post
Sat, May 25, 2013 21:32:18 PM
Bangkok Post
Bangkok's condominium market is showing signs of slowing down in the short term, says property consultant Colliers International Thailand.
Surachet Kongcheep, senior manager of Colliers' research department, said approximately 9,920 condominium units were launched in the second quarter of 2012, a decrease of around 30% from the first quarter.
The total number of newly launched units in the first half of 2012 was approximately 24,100 units higher than during the first six months of 2011, when about 1,580 units were launched.
The northern fringe area of the city was still the part of town that was most in demand. Nearly 2,200 units, or around 22% of newly launched units in the second quarter of 2012 were located in this area.
This is due to the availability of land plots in the area, especially along small roads which connect to Ratchadaphisek Road, said Mr Surachet.
Its popularity could also be attributed to the area's close proximity to mass transit stations.
Land prices in the area are still cheaper than in the inner city area, while facilities available were similar, said Mr Surachet.
More than 70% of newly launched units in the first quarter of 2012 were about one kilometre away from mass transit lines. Areas along the new mass transit extension lines are also witnessing large-scale construction, he said.
"These areas were the most interesting for developers and buyers. Many condominium projects were launched in these areas during the past two years along the mass transit lines.
"Only 515 units, or 5%, were located no more than 200 metres away from BTS or MRT stations," said Mr Surachet.
The average take-up rate of condo units launched in the second quarter was approximately 41%.
This was about 33% less than the first quarter, as many new projects from well-known developers were launched in the first quarter, said Mr Surachet.
Distances from BTS and MRT stations were the main factors affecting the average selling prices of units.
The average selling price of projects not more than 200m from BTS or MRT lines was 48% to 170% higher than projects' located further away.
The prices of condominiums ranged from 155,000 baht per sq m to 57,500 baht per sq m.
Land prices in a 600-metre radius of the mass transit stations is set to rise, as the latest draft of a new Bangkok city plan would allow buildings to be taller than 23m and cover over 10,000 sq m based on limitations of floor:area ratio (FAR).
If the Department of City Planning implements this latest draft, land prices in the area will rise, pushing up the average selling price of condominiums in these zones, said Mr Surachet.
Big-name developers would also take a majority stake of condominiums in the city area, especially along the mass transit line, as land prices would be too high for small developers, he said.
