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Condo launches off 36% in first quarter

Bangkok Post Apr 23, 2009

The recession and political instability continued to weaken the Bangkok condominium market in the first quarter with new launches down by 36% over the fourth quarter of 2008, according to Knight Frank Chartered (Thailand).

Newly launched condo units totalled 1,671 compared with 2,651 in the fourth quarter. The property agency forecasts launches in the second quarter at similar levels as the first with a concentration in areas near mass-transit routes.

The projection is based on low confidence in the country's economic and political situation, which will deter developers.

The take-up rate represented only 40% of new condominiums launched in the first quarter, down from 42% of units sold in the fourth quarter of 2008.

The average selling price per square metre rose 1.1% in the first quarter, to 123,000 baht from 122,000 baht in the central business district. In the Sukhumvit area, the average rose to 121,200 baht from 119,900 baht.

The selling prices of condominiums launched in the second quarter are forecast to be unchanged or marginally higher.

However, Knight Frank said the market still had a balance between supply and demand. "When people delayed buying decisions, developers also launched fewer projects to prevent the risk of large unsold stock," it said.