The take-up rate for newly launched Bangkok condominiums continued to rise in the second half of 2015, according to new research from real estate firm DTZ.
It reported there were 9,711 units sold in H2 2015, and 5,216 units were still available for purchase in the central business district (CBD) and non-CBD markets across the capital.
The overall take-up rate for Bangkok’s condominium market in H2 2015 was 65.1 percent – higher than the 63.4 percent in H1 2015. It said the growth in demand for new projects was supported by the Government property stimulus incentives, which included cutting housing transfer and mortgage fees, and extra tax deductions for home buyers.
The condominium market was also continually stimulated by a mixture of marketing and sales campaigns from property developers to help boost sales.
Demand for high end units remains strong
The demand for high-end units with superior specifications in CBD areas remained strong, according to DTZ, with some developers able to sell 100 percent of their projects prior to launch. This was illustrated at AQ ARIA Asoke by AQ Estate, selling 315 units, and Siamese Exclusive Sukhumvit 31 by Siamese Asset, selling all 192 units.
DTZ said that buyers of these projects tended to purchase the condominium units for their own occupation or for long -term capital appreciation.
The firm also saw an increase in foreign buyers investing in high-value properties in Bangkok’s CBD area in view of the increasing number of projects that are being launched in Hong Kong, Taiwan and Singapore.
DTZ concluded by reporting that condominium purchasing activity is expected to escalate amid improving market conditions. Most of the purchasing activity is expected to be focused on the CBD areas of Bangkok, and on high-end condominium units. The purchasers in this segment are less impacted by the economic downturn.
Rising household debt will continue to hold back the sector as banks become increasingly selective with housing loans, it added.
