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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
Inner-city Bangkok offerings significantly reduced in First Half of 2007. Demand was in-line with the new supply. 64% of new units launched in First Half of 2007 were already sold as of June 2007.
Steady growth at the top-end of the market. Only few developments are being offered in that segment, selling fast with new price records for quality developments located on main roads (Sathorn, Sukhumvit roads).
Further completions of condominium developments with another 3,868 units completed in the First Half of 2007. Transfers for completed developments worth Baht 5.96 billion, with foreign entities representing 17%
Major Resort Destinations:
Strong tourism figures support the expansion of Thailand resort properties. 30% of the total luxury condominium industry is now located in resort areas.
Solid interest in resort areas close to Bangkok, including Hua Hin and Pattaya locations. Demand in Phuket and Samui is more exposed to international concerns over local currency and policy issues on foreign investment.
Attractive prices of resort properties pull international buyers to Thailand. Main foreign buyers are British, Australians, Americans and Swedish. Emerging interest from Russians, Chinese, South Koreans and EU
Outlook
Condominiums are now the most favored type of property amongst local and international home buyers in Thailand. We foresee a bright outlook in this sector of the industry.
The luxury segment is definitely a niche market but still with few developers and very limited supply. Balance of Supply/Demand is healthy, with an active resale market for newly completed developments.
Property values in Thailand are still very attractive and prices will jump significantly once uncertainties over an elected government & changing policies diminishes.
Developers of residential real estate have just started to tap into the lucrative tourism market available in Thailand. This now represents 30% of the luxury condominium industry but that figure is destined to grow significantly.
Raimon Land CEO Mr. Nigel Cornick commented: "The findings of the latest edition of Condominium Focus show that interest in condominiums in Thailand remains high and that premium developments are still in very high demand from both local and international buyers and investors."
(for more, please click on the "Condominium Focus Special Issue August 2007")
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