27-12-2023 (BANGKOK) Affordable condominiums are predicted to be in high demand in the coming year in Bangkok due to their affordability, the expansion of new mass transit lines, and rising land prices.
Sumitra Wongpakdee, the managing director of property firm Terra Media and Consulting, revealed that condo units priced below 80,000 baht per square meter had the fastest sales in 2023, with an average of 25.6 units sold per project per month.
Wongpakdee explained that key factors driving the demand for these units were prices that met the market demand and the availability of new mass transit lines like the Yellow and Pink lines, particularly in the outer areas of Bangkok where land costs allowed for the development of low-priced condos.
According to TerraByte, the residential market research application developed by Terra Media and Consulting, the condo market in Greater Bangkok experienced consecutive declines in terms of new supply launched and absorption rate from 2015 to 2023.
However, the low-priced and mid-priced condo segments have seen an upturn since 2022, while the upper-end and luxury segments have not shown the same growth, according to Wongpakdee.
The number of new condo units priced below 80,000 baht per square meter launched in 2020 decreased to approximately 18,000 units from 30,000 units in 2019. The decline continued to 16,000 units in 2021 but then surged to 34,000 units in 2022 and 28,000 units in 2023.
The absorption rate per month in this segment increased to 10.5 units in 2022 and 12.3 units in 2023, up from 10.1 units in 2021. This followed a consecutive decrease from 16.1, 14, and 11 units in 2018, 2019, and 2020, respectively.
In the mid-priced segment, which includes units priced between 80,000 and 150,000 baht per square meter, the new condo supply launched in 2020 and 2021 declined to 10,100 units and 8,100 units, respectively, from 27,400 units in 2019 and 33,400 units in 2018.
Around 20,000 units were introduced in 2022, but the number fell to 10,600 units this year. This decline led to an increase in the monthly absorption rate to 11.7 units from 8.8 units in 2022, marking the lowest rate since 2018.
Condos priced between 150,000 and 200,000 baht per square meter and those priced above 200,000 baht per square meter consistently had lower supplies of less than 2,400 units since 2020, a decrease from 5,800 units and 3,100 units in 2019.
“The condo market has faced its most significant challenge in the last five years as foreign and investment buyers have decreased since the pandemic,” stated Wongpakdee.
She also noted that the mid-priced category currently has the largest remaining supply, with a total of 21,555 units, while the luxury segment has the least supply, with only 1,177 units.
In terms of location, Chatuchak-Pracha Chuen-Rattanathibet has the largest remaining supply with 3,818 units, while Vacharapol-Sai Mai has the least supply, with only 45 units available.
