16-1-2024 (BANGKOK) Condo prices in Bangkok have continued to climb, with Lower Sukhumvit experiencing the most significant increase, while prices in neighbouring provinces have dropped. The surge in prices can be attributed to a large number of unsold units that remain on the market.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), revealed that the price index of new condo units available for sale in Bangkok has seen a consistent year-on-year increase for four consecutive quarters since the first quarter of 2023.
“We are observing an upward trend in the condo price index in Bangkok,” said Vichai. “The area that has witnessed the highest surge is Lower Sukhumvit, particularly in the price range of 7.51-10 million baht per unit.”
Following closely is the Thon Buri area, with prices ranging from 3.01-5 million baht, and the Lat Phrao-Wang Thong Lang-Bang Kapi zone, with a price range of 3.01-5 million baht.
According to the REIC, the price index of new condo units available for sale in Greater Bangkok (including Bangkok, Nonthaburi, and Samut Prakarn) rose by 2.7% to 154.3 in the fourth quarter of 2023, compared to the same period in 2022.
The driving force behind this increase was the price index in Bangkok, which rose by 3.5% to 157.3. However, when compared to the third quarter, it experienced a slight decline of 0.5% from 158.1. Developers launched sales campaigns at the year-end to stimulate sales, leading to this dip.
Mr Vichai also noted that the price index of condo units in Bangkok’s neighbouring provinces, Samut Prakan and Nonthaburi, has experienced a year-on-year decline for five consecutive quarters since the fourth quarter of 2022.
“The decrease is largely a result of the significant number of unsold units from projects launched for sale prior to 2021,” he explained. “These projects had construction costs for building materials and labor that have not been revised upwards.”
Developers have resorted to offering discounts and promotional campaigns in the fourth quarter of 2023, leveraging their previous construction costs. In this quarter, cash discounts and freebies accounted for 71.5% of sales strategies.
REIC’s report indicates that the condo price index in Samut Prakan and Nonthaburi for the fourth quarter of 2023 stood at 141.2, representing a 0.9% year-on-year decrease and a 0.2% decline from the third quarter of 2023.
“The condo price index in these two provinces continues to decline due to consecutive year-on-year decreases from the fourth quarter of 2021 to the fourth quarter of 2022,” Mr Vichai elaborated.
The area with the most substantial decrease was Muang Samut Prakan-Phra Pradaeng-Phra Samut Chedi, with prices ranging from 1.01-1.5 million baht per unit. It was followed by Muang Nonthaburi-Pak Kret, with prices between 2.01-3 million baht, and the Bang Phli-Bang Bo-Bang Sao Thong zone, with prices also ranging from 2.01-3 million baht.
These zones are characterized by intense competition and a considerable number of unsold units still available on the market.
