Floods Push Condo Hike
Floods in Bangkok change the residential market’s demand. According to Samma Kistin, Director of the Real Estate Information Centre (REIC), recent flooding had caused individuals to shy away from low-rise residences in flood prone areas. This in effect creates an increase in demand for condominiums. Having this in mind, real estate developers are inclined in creating more condominium units to meet the market’s demand. About 13,600 units in 25 condo projects have been launched earlier this year, Mr Samma revealed.
Some low-rise projects were still created but these projects were mostly in the eastern zone like On Nut, Bang Na and Srinakarin. These are not considered as flood-prone areas. The project consisting of 2,000 units have 1,000 single houses, 700 townhouses, 200 duplexes and 100 SOHO units. Mr Samma said, however, that just last February some new projects were still in flooded areas.
Although Mr Samma is implying relocation attempts from flooded areas, recent poll suggests otherwise. Based on a recent survey posted by REIC asking on the residents’ preference on location after the flood, 34% of those in the flooded area opt not to relocate. Only 10% of the 471 respondents who live in flooded areas expressed their willingness to move. The 54% of the people in areas untouched by flood still choose to stay in their locations while two percent of the respondents who did not experience flood in their area don’t mind moving to places which experienced flood. Developers are willing to go outside the capital to create new homes to those who want to escape upcoming floods.