Bangkok’s condo market, which was hugely attractive to foreign buyers before the Covid-19 pandemic, has seen a “modest improvement” in 2021, but overall sentiment remains weak. The main reason is the continued lack of foreign purchasing power, according to the latest report on the Thai capital’s residential market by real estate group CBRE. The condominium market has been “directly affected” by the outbreak due to the impact on Thailand’s economy, customer confidence, spending power and an oversupply of units, the report said. Due to the lack of foreign buyers, a vital part of the city center…
Bangkok’s condo market, which was hugely attractive to foreign buyers before the Covid-19 pandemic, has seen a “modest improvement” in 2021, but overall sentiment remains weak.
The main reason is the persistent lack of foreign purchasing power, according to a newly released report Report Real estate group CBRE is in the Thai capital’s residential market.
The condominium market has been “directly affected” by the outbreak due to the impact on Thailand’s economy, customer confidence, spending power and an oversupply of units, the report said.
Complicating the situation is a lack of foreign buyers, an important part of the inner city market, who are unable to visit to view and buy units as in the past, or have the confidence to buy off-the-plan remotely, it added.
Over 9,000 new units listed in Q4 2021
The final quarter of 2021 saw a slight upturn in the condo market, with some new launches in downtown, midtown and suburban areas. Overall, there were 9,182 new homes listed in Bangkok, a 7% increase from the same period last year.
Still, overall apartment market sentiment in the fourth quarter of 2021 has not fully recovered. Multiple projects have been delayed or suspended due to various factors such as financial viability, project repositioning or waiting for market improvement.
This can be seen in several unfinished high-rise projects in Bangkok’s central business district, where construction has been completely halted for several months. In the fourth quarter of 2021, off-the-plan home sales in the city centre fell by 6.5 per cent compared to the fourth quarter of last year.
Developers focus on cheaper midtown and suburban projects
In its outlook for 2022, CBRE expects the condominium market to “slightly improve” again, with a “gradual increase” in the number of new projects in downtown Bangkok.However, many listed developers have announced that their 2022 plans will focus more on developing condominium projects in Thailand’s mid-city and suburbs, as well as other provinces
“We believe the inner-city apartment market will continue to be relatively quiet compared to developers who can offer lower price ranges that are more in line with current demand,” the report said.
