Strong Condominium Sales Continue in Bangkok

The condominium market in Bangkok continues to thrive in spite of increasing costs of construction, and prices remain some of the most attractive in the region. In comparison to other Asian capitals, Bangkok successful competes for investor dollars.

Bangkok maintains its status as one of the most affordable cities in Asia, in terms of luxury residential property prices, based on sales in completed developments. The average price of $2,425 per square metre is only one-tenth the price of similar units in Hong Kong and Singapore.

Beijing posted a moderately lower price per square metre in 2006 compared to Bangkok but in 2007 the rates in China’s capital soared by more than 40%, reaching $2,873 per square metre.

In 2007, the demand and supply situation for new condominiums was reasonably balanced, with 63% of the new 6,940 units launched in 2007 sold by the end of the year. Overall, a total of 6,214 condominium units were sold in 2007, having a total value of 42.5 billion baht. The supply/demand balance appears to be stable for the immediate future.

Low interest rates have fuelled demand, lifting purchasing power and stimulating local buyer investment. Consumer confidence appears to be recovering since the fourth quarter of 2007 following incentives initiated by the new Thai government.