2022-03-10-莱坊-Bangkok_Condominium_Market_Q4_2021_6页_1mb

Bangkok Condominium Market Overview Q4 2021 Summary

Key Highlights

• Total cumulative supply by Q4 2021 reached 20,015 units across 2021, with Q4 2021 new supply accounting for 11,252 units, a 62.7% increase compared to Q4 2020.
• Sales rate in Q4 2021 was 25.2%, a decrease of 8.0 percentage points year-over-year and 12.8 percentage points quarter-over-quarter, reflecting strong inventory levels.

Supply Trend

• New developments in Q4 2021 were concentrated in suburbs (70% of supply), with large developers dominating (up to 70% share and over 7,000 units).
• Average pricing ranged from 0.9 to 3.5 million Baht, with most units (63%) in grade C, targeting upper-income buyers, averaging 80,000-100,000 Baht per square meter.

Demand Trend

• Demand driven primarily by real residential buyers, not investors, as most new launches were in residential areas like suburbs.
• Buyers focused on units priced at or below 3 million Baht, demonstrating readiness to purchase due to government policies and market opportunities.
• This group possesses moderate-to-high purchasing power and engages in pre-order bookings with cautious sales.

Selling Price Trend

• Asking prices decreased across all Bangkok regions during Q4 2021 due to prolonged vacancies and strategic promotions:
  • Central Business District (CBD): Price at 239,689 Baht/sq m, down 0.4% quarterly and 4.6% year-over-year.
  • City Fringe Area: Price at 115,659 Baht/sq m, down 1.1% quarterly and 6.3% year-over-year.
  • Suburbs: Price at 63,258 Baht/sq m, down 2.1% quarterly and 8.2% year-over-year.

Outlook

• The market is expected to recover gradually in 2022, with an estimated 10,000 new units launched, driven by factors like eased loan-to-value ratios and eased government measures.
• Risks include potential Omicron wave, inflation, or reimposition of lockdowns, which could affect market activity and prices, leading to a slower recovery.
• Favorable locations and technological enhancements in new developments are expected to attract buyers. Location-wise, suburbs and peripheries remain key residential areas, while CBD areas may see price increases for new launches.