2021-06-14-莱坊-Bangkok_Condominium_Market_Q2_2021_6页_647kb

Bangkok Condominium Market Overview Q2 2021 Summary

Core Content

This document provides an overview of the Bangkok condominium market during the second quarter of 2021, highlighting key trends in supply, demand, and selling prices. It also includes insights into the market outlook and definitions of key locations in Bangkok.

Main Points

Supply Trends

• Total new supply in Q2 2021: 2,659 units from 7 projects.
• New supply decrease: A 33.8% drop compared to Q2 2020 and a 26.8% decrease from Q1 2021.
• Suburban dominance: 72% of the new supply was located in the suburbs, with 1,915 units.
• CBD and City Fringe supply: 22% and 6% respectively.
• Price categories:
  • Grade B (80,000–149,000 baht/sq m): 43% of supply.
  • Grade C (below 80,000 baht/sq m): 35% of supply.
  • Grade A (150,000 baht/sq m and up): 22% of supply.
  • Super Prime (200,000 baht/sq m and up): No new supply in Q2 2021.

Demand Trends

• Units sold in Q2 2021: 993 units.
• Sales rate: 37.3%, up 22.9% from Q2 2020 and 0.4% from Q1 2021.
• Sold-out project: One project achieved a 100% reservation rate, selling 730 units (73% of total Q2 sales).
• Buyer profile: Mostly repeat buyers with confidence in the developer's reputation.
• Impact of the epidemic: The ongoing outbreak caused a decline in demand, with buyers delaying urgent decisions.

Selling Price Trends

• Price declines across all areas:
  • CBD: 240,609 baht/sq m, down 9.8% YoY and 4.2% QoQ.
  • City Fringe: 116,225 baht/sq m, down 21.1% YoY.
  • Suburbs: 64,390 baht/sq m, down 19.5% YoY and 6.2% QoQ.
• Discount strategies: Developers used price reductions to attract real buyers and manage cash flow.
• Zero expenses offers: Some projects provided zero expenses to boost sales.

Market Outlook

• Stability expected in Q3: Market will remain stable as developers delay launches to Q4, anticipating better epidemic control.
• Project launches: Estimated to include no more than 5,000 units in Q3.
• Economic sensitivity: Continued epidemic impact and rising household debt could affect lower-middle market purchasing power.
• Political issues: Unresolved political matters may hinder developer confidence and investment.
• Large developers advantage: Expected to dominate 70% of project launches due to better land accumulation and cost management.

Key Information

• The market faced ongoing challenges due to the severe and uncontrolled spread of the Covid-19 epidemic.
• Large-scale developers are more resilient and continue to invest in new projects, especially in the suburbs.
• Suburban projects with lower asking prices are more attractive to buyers with limited income.
• Super Prime units (200,000 baht/sq m and up) were not launched in Q2 2021.
• The sales rate increased slightly, driven by one project that sold out quickly.

Location Definitions

Central Business District (CBD)

• Includes areas popular with expatriates, tourists, and affluent Thais.
• Sub-areas: Silom/Sathorn, Prime Sukhumvit (Prime SKV), Central Lumpinee (CL), Charoen Krung/Narathiwat/Rama 3, Surawongse/Samyan/Siphaya.

City Fringe Area

• Located on the edge of the CBD, offering easy access to shopping and transportation.
• Sub-areas: SKV 44-70, SKV 65-103, Ratchada/Rama 9/Ladprao, Phahonyothin/Phayathai, Petchburi Road, Charoen Nakorn/Thonburi, Bangsue/Tao Poon/Pracharati.

Bangkok Peripheral Area

• Includes:
  • Eastern Bangkok: Bangna, Srinakarin, Ramkamhaeng, etc.
  • Late Sukhumvit: Sukhumvit Road beyond Soi 105 and 70.
  • Northern Bangkok: Ngamwongwan, Chaengwattana, etc.
  • Southern Bangkok: Petchkasem, Ratchapruk, etc.
  • Late Ratchada/Ratchayothin/Late Ladprao: Ratchada, Ratchayothin, and Ladprao roads beyond certain sois.

Contact Information

• Phanom Kanjanathiemthao (Managing Director): +66 (0) 2643 8223 Ext 124 | phantom.kanjanathiemthao@th.knightfrank.com
• Nattha Kahapana (Deputy Managing Director & Head of Phuket Operation): +66 (0) 2643 8223 Ext 300 | nattha.kahapana@th.knightfrank.com
• Frank Khan (Executive Director, Head of Residential): +66 (0) 2643 8223 Ext 105 | frank.khan@th.knightfrank.com
• Sunchai Kooakachai (Director, Head of Research and Advisory): +66 (0) 2643 8223 Ext 188 | sunchai.kooakachai@th.knightfrank.com

Additional Notes

• The report is published by Knight Frank Thailand Research and is available at knightfrank.co.th/Research.
• The report is for general information only and not to be relied upon for decision-making.
• All clients require expert, independent advice tailored to their specific needs.