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Since the Economic Crisis in the late 90's, Thai developers have realized the importance of quantitative research of the real estate market. However, there is a shortage of reliable data available to monitor the sector. Therefore, Raimon Land has decided to publish "Condominium Focus" as a tool to monitor the Condominium sector in Central Bangkok and Key Resort Areas of Thailand.
Inner-City Bangkok
Demand for new condominiums was inline with new supply as 63% of the 6,940 units launched in 2007 were sold by the end of 2007
A total of 6,214 units were sold in 2007, worth THB42.5 billion
To date, 5,763 units remain unsold. Half of these units are in developments that have yet to start construction
Transfers for complete developments reached THB9.6 billion, with foreigners representing 20% of purchases
5,100 units were completed in 2007 with an additional 6,500 to 7,000 units expected to be completed in 2008
Major Resort Destinations
With the tourism industry growing at an average rate of 9.5% per annum, resort properties are now representing 30% of the THB60 billion luxury condominium market in Thailand
In 2007, 1,789 units were sold worth THB17 billion. Solid interest was in resort areas close to Bangkok, including Pattaya and Hua Hin
27% of units sold in 2007 were priced over THB100,000 per square metre (psm), very few of the beachfront or seaview developments are now priced under THB100,000 psm
1,814 units or 23% of all developments launched since 2003 have already been completed and an additional 2,000 units are expected to be completed in 2008
Outlook 2008
More branded real estate will be offered by developers
Emergence of new groups of buyers to boost luxury real estate in Thailand
New price records will be achieved in prime residential developments
Construction costs will rise sharply and reduce margins of affordable condominium developers
Potential risks remain with the deterioration of the global economy, strengthening of the Thai baht and unfriendly foreign ownership policies
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