Despite many reports indicating the high-end of Bangkok is where developers have been focusing their attentions, new research has discovered it was the exact opposite in the first half of 2015.
Real estate agency Plus Property revealed that supply was greatest in the THB 70,000 to THB 99,999 per sqm sector during the first six months, with 24,029 representing 28 percent of the entire supply to the Bangkok market.
Next in terms of price were units priced below THB 50,000 per sqm which accounted for 26 percent of total supply – or 22,185 units. Next came units priced between THB 50,000 and THB 69,999 per sqm, with a share of 24 percent or 20,566 units.
That means more than three quarters of the supply that came to market during the first half of the year was priced below THB 99,999 per sqm. Just 5 percent – some 4,245 units – were priced above THB 199,999 per sqm – a price that is generally considered to be at the low end of Bangkok’s condominium sector.
Plus Property also said that it is found growth of offered supply during the first half year of 2015 has grown in every price sector, and despite the relatively low numbers, especially in the THB 199,999 per sqm and above sector. For supply priced below THB 50,000 per sqm growth was recorded at 28 percent compared with the same period last year.
Demand also increased, almost at the same rate as prices, according to the research.
Demand for units priced at THB 199,999 per sqm and above showed an increase of 958 percent year-on-year, while despite the increase in supply, demand for units at the lower end – below THB 50,000 per sqm – showed the largest decrease of 9 percent due to what Plus Property described as internal economic conditions and higher household debt.
The average offered price in Bangkok during the first half of the year was THB 100,676 per sqm, an increase of 7 percent compare with the same period last year.
Rama III was found to have the highest growth at 17 percent and reached THB 114,216 per sqm, followed by the central business district area (the Ploenchit-Chidlom and Silom-Sathorn areas) and Phaholyothin areas which saw a 17 percent increase and reached THB 193,658 per sqm and THB 120,652 per sqm respectively.
