Condo resales in prime Bangkok were not harmed by the ongoing COVID-19 pandemic, according to Knight Frank Thailand. The market was driven by increased supply and low prices as buyers with cash in hand acted quickly to secure discounted units. This trend is likely to continue in the early parts of 2021.
“Buyers see this time as an opportunity to acquire a condo at the best possible price. They are switching from putting their funds in fixed deposits or investing in stocks to long term assets,” Khun Anchalee Kasemsukthawat, Knight Frank Thailand Head of Prime Sales, explained to the Bangkok Post.
Demand for condo resales was strongest between Chidlom to Thong Lor in central Bangkok last year. According to Knight Frank Thailand, purchase prices in this area were between THB180,000 and THB320,000 per square meter. However, an increase in supply saw many owners lower their asking price to find a buyer. Both investors and end users were active in this segment.
“There were price cuts in new and resale condos, aiming to attract customers with good purchasing power, including those wishing to reside in units themselves and those buying for rent,” Khun Anchalee told the newspaper.
The COVID-19 pandemic and economic fallout from it saw some property owners look to sell assets to either change their investment portfolio or increase liquidity. At the same time, a number of cashed-up Thai investors who had been on the sidelines acted quickly to advantage of a buyer’s market.
The consultancy added that condo resales in prime Bangkok may pick up even further this year. It’s possible foreign investors soon reenter the market in search of discounted units. Additionally, a lack of new units being launched could also support condo resales in the Thai capital.
Colliers International Thailand estimates that only 20,000 condo units will hit the market in 2021, the lowest total in 15 years, as developers curb new Bangkok condo launches.