2017 is shaping up to welcome launches of a string of new residential projects.
Many residential developers in central Bangkok are deferring launching their projects from the final quarter of 2016 to next year. Thus influencing the overall supply for 2016 which according to data released from the Real Estate Information Centre is expected to be fewer than 100,000 units. This is a decrease in supply from 2014 that saw just shy of 105,000 units launched.
One factor influencing this decline in properties being placed on the market is a result of many developers’ strategy for the first quarter of 2016. Using this period to concentrate on units that were ready to transfer in wake of the property tax incentives that ceased in April, has meant that developers have had to reshuffle their inventory shifting launch dates to later in the year.
There were also changes in the type of property being launched. For the first three quarters of the 2016 there was a three percent increase in the number of low-rise houses. To meet with the growing demand for this type of product influenced the 17 percent decrease in condominium launches. However, this leveling out of the supply to the market caused a steady take-up rate of 75 percent for the third quarter of 2016.
Whilst the various segments of the market have performed well, the THB 100,001 to 150,000 per square metre enjoyed an impressive 82 percent take-up rate. This was followed closely behind by both the market below THB 50,000 and also the THB 150,001 to 200,000 segment with a 81 percent take-up rate.
Bangkok’s property market is still performing well however it appears that developers are carefully considering their strategies going forward. Flooding the market will result in more competition and lower values, therefore is no wonder that an astute approach is being taken.
