Rising Demand for Resale Condos

Due to the limited condo supply in prime city areas, as well as the relatively high prices of new developments, urban dwellers and investors have increasingly turned their attention to resale units, reports The Nation.

Certain trends have emerged. The first is that a resale condo will typically be priced 20 to 30 percent lower than new residential projects, depending on how much renovation work the property needs. Also, demand for condos has grown much higher than that of low-rise residences this year. This is because the purpose has shifted from buying for investment or speculation to securing a back-up in case of calamities such as floods; in other words, buyers are increasingly interested in resale properties as second homes. Moreover, resale condos close to mass transit systems are especially popular.

For many condominiums, resale prices are higher than their presale prices. However, the resale price remains lower than that of new projects cropping up in the same location.

According to a survey conducted by The Nation at the end of October, the resale prices of condos located in the Sukhumvit, Phloenchit, Sathorn, Pathumwan and Thonglor neighbourhoods have surged by 30 to 50 percent over their advertised prices when new. Most of them are ready-to-move-in condo projects that came on the market between 2006 to 2009.

For example, The Address Chidlom, which had a pre-sale price of THB 102,000 per square metre in 2007, is now offering resale prices of THB 135,000 to 150,000, up 32 to 47 percent. The Alcove Thonglor could be bought for THB 87,000 during pre-sales, but it now commands THB 115,000 per square metre for a resale unit, up 32 percent. Baan Sirirudee in Soi Rumrudee had presale prices of THB 85,000 to 110,000 per square metre, depending on the floor. Its resale prices are now THB 134,000 to 150,000 per square metre — a 57 percent jump.