Bangkok Condominium Market Overview 2019 - Residential Research - Knight Frank
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Residential Research
Bangkok Condominium
Knightfrank.co.th/Research
Market Overview 2019
BANGKOK CONDOMINIUM MARKET OVERVIEW 2019
HIGHLIGHTS
1 2
THE ACCUMULATED SUPPLY OF BANGKOK THE CUMULATIVE DEMAND OF BANGKOK
CONDOMINIUMS INCLUDED 623,381 UNITS AT CONDOMINIUMS AS OF THE END OF 2019 WAS
THE END OF 2019; A GRAND TOTAL OF 57,722 UNITS 525,223 OF 623,381 UNITS (THE TOTAL AMOUNT OF
FROM 130 PROJECTS WERE LAUNCHED DURING THE SUPPLY), OR AN 84.3 PER CENT SALES RATE.
2019. THIS REPRESENTS A DECREASE FROM THE NUMBER OF NEW CONDOMINIUM UNITS SOLD
THE PREVIOUS YEAR OF 16.3 PER CENT. IN 2018, IN 2019 WAS ONLY 39,919 UNITS. THERE ARE
THERE WERE 68,900 NEW CONDOMINIUM UNITS APPROXIMATELY 98,158 UNITS AVAILABLE FOR SALE.
FOR SALE.
3 4
CONDOMINIUM BUYERS IN 2019 WERE COMPRISED AS FOR ASKING PRICES OF CONDOMINIUM IN
OF 70 TO 80 PER CENT OF BUYERS WITH REAL BANGKOK, IT WAS FOUND THAT THE PRICE LEVEL
DEMAND OR THOSE WHO PURCHASE THE UNITS INCREASED IN ALL LOCATIONS. THE ASKING PRICE
AS THEIR ACTUAL RESIDENCES. THE OTHER 20 OF CONDOMINIUMS IN THE CBD WAS 268,000 BAHT
TO 30 PER CENT OF BUYERS WERE INVESTORS. PER SQUARE METRE, WHEREAS THE ASKING
PRICE OF CONDOMINIUM IN THE CITY FRINGE AND
THE SUBURBS WAS 149,500 AND 81,000 BAHT PER
SQUARE METRE, RESPECTIVELY.
“ The condominium market in 2020 faces even more
challenges than 2019. The COVID-19 pandemic
is causing severe damage to the overall economy.
As it is a buyers’ market, developers have to adjust
to changing sales strategies and promotions to satisfy
demand in order to survive.
“
RISINEE SARIKAPUTRA
Director, Research and Consultancy
2
BANGKOK CONDOMINIUM MARKET OVERVIEW 2019
Market Overview
2019 marks a sluggish year for the Bangkok condominium market, reflecting low confidence among both developers and
buyers in the Thai market. The Bangkok condominium market, which used to be a haven for speculators, has now become
a buyers’ market. Stricter mortgage regulations from the Bank of Thailand have also had a direct impact on sales. Many
developers have reduced launches of new projects and shifted their focus to units priced below 100,000 baht per square
metre, in recognition of modest purchasing power and to appeal to first-time buyers and first-time workers. Developers have
implemented price wars and aggressive discounts in the condominium market as they need new strategies to hit their sales
targets for the year 2020, especially for nearly completed projects where sales remain flat.
Condominium Market Supply in Bangkok, 2009 - 2019 Supply Trend
As the end of 2019, the accumulated
supply of Bangkok condominiums included
623,381 units. In 2019, there were
approximately 57,722 new condominium
units from 130 projects added to the
supply. The new supply in 2019 decreased
from the previous year of 16.3 per cent.
In 2018, there were 68,900 new condo-
minium units for sale. In 2019, up to 61
per cent of the newly launched units
werelocated in the suburbs of Bangkok,
followed by 24 per cent in the City Fringe
and only 15 per cent in the Central
Source: Knight Frank Thailand Research
Business District (CBD).
Supply, Demand and Sales Rate of Bangkok Condominiums,
2009 - 2019
Demand Trend
The condominium market in 2019
included an accumulated sales rate of
525,223 units, from a total supply of
623,381 units. This represents a sales
rate of 84.3 per cent, which dropped from
2018 with a sales rate of 85.8 per cent.
The number of new condominium units
sold in 2019 was only 39,919 units. The
average number of new condominiums
sold per year in the past five years is
approximately 58,000 units per year. The
number of condominium units sold in
Source: Knight Frank Thailand Research 2019 is down by 31.2 per cent – the main
reason being the LTV measures that have
cut the purchasing power of investors,
Condominiums Sold, 2014 - 2019
speculators and foreign customers as
well as reduced opportunities for buyers
who are looking to purchase residences,
as commercial banks have implemented
tighter credit controls. In addition, the
Chinese government prohibits money
transfers outside of the country. These
factors have resulted in decreased
liquidity to buy condominiums launched
in the past year, and the market has
slowed down considerably. Condominium
buyers in 2019 were comprised of 70 to
80 per cent of buyers with real demand
Source: Knight Frank Thailand Research
or those who purchase the units as
their actual residences. This group is
interested in buying condominiums that
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BANGKOK CONDOMINIUM MARKET OVERVIEW 2019
Selling Price of Condominiums in Various Areas of Bangkok, are already completed and ready for
2010 - 2019 occupancy. The other 20 to 30 per cent
of buyers were investors interested in
purchasing condominiums located along
the train lines that are currently under
construction or already completed. Most
of the condominium units sold in 2019
were mostly completed projects, with a
selling price of less than 3 million baht
per unit. Newly launched projects are still
being sold but sales will be slow. Another
factor that caused condominium sales to
decline in 2019 was the lower purchasing
power from foreign countries, especially
China, due to the economic slowdown.
Source: Knight Frank Thailand Research The purchasing power from foreign and
Chinese people is expected to decrease
Discount Rates from Condominium Projects further in 2020 due to the COVID-19
virus situation, causing foreigners to
refrain from traveling to various countries,
including Thailand. The number of remai-
ning condominium units for sale at the
end of 2019 is approximately 98,158
units.
Selling Price Trend
Source: Knight Frank Thailand Research
As for asking prices of condominiums in
Bangkok, it was found that the price level
Overall Market Strategy for Operators in 2020
increased in all locations. As of the end of
2019, the asking price of condominiums in
the Central Business District was 268,000
baht per square metre, increasing from
2018’s price of 260,761 baht per square
metre, representing an increase of 2.8 per
cent. The asking price of condominiums
around the City Fringe at the end of 2019
was 149,500 baht per square metre,
reflecting a 2.7 per cent increase from
the previous year, where the price was
145,556 baht per square metre. The
asking price of condominiums in the
suburbs of Bangkok at the end of 2019 was
81,000 baht per square metre, increasing
at the rate of 2.3 per cent from 2018’s
price of 79,158 baht per square metre.
Although asking prices increased, the
economic downturn has led many condo-
minium projects to offer discounts and
promotional activities to attract buyers.
In particular, larger discounts have been
offered by operators of projects with
overpriced units, as opposed to projects
with more appropriate price levels. It was
found that condominium projects located
in the Central Business District provided a
discount of 2.5 to 6 per cent from the initial
asking price. Residential condominiums
in the suburbs of Bangkok offered a
relatively high discount of 5 to 13 per cent
off the initial asking price. Condominiums
Source: Knight Frank Thailand Research
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BANGKOK CONDOMINIUM MARKET OVERVIEW 2019
Residential Project Development Plans in 2020 from Listed in the City Fringe gave discounts of 3 to 6
percent from the initial asking price. Also,
Companies in Thailand
developers listed on the stock exchange
provided discounts at a lower rate than
smaller developers.
Marketing Strategy for
Developers in 2020
• Slow down the launches of condomi-
niums in 2020. Some operators, such as
Land and House, Golden Land, Property
Perfect, etc., have decided not to launch
any condominium projects this year.
Others plan to launch only one project;
these include Ananda Development with
Ideo Pahol – Saphan Kwai and SC Asset
with the 429-room, The Crest Park Resi-
dences in the Ladprao 5-way intersection
area.
• Focus on developing horizontal projects
such as single-detached houses, semi-
detached houses and town houses instead
of launching condominiums. SENA Deve-
lopment is ready to take the town house
market by storm this year.
• Expand investment to the provinces.
For example, AP Thailand has adjusted
Source: Knight Frank Thailand Research
their strategy to expand to the provincial
markets, launching a new brand in the 1
to 2 million baht price segment. They will
launch this in four to five regions, with one
project per region. The first such project
will be in Nakhon Sri Thammarat province.
• Offer condominium rooms as long-term
rentals, and then compile a large portfolio
of 50 to 100 rooms to be sold to a big
investor. This strategy is being under-
taken by LPN, with their pilot projects
being Lumpini Township Rangsit-Khlong
1, Lumpini Rama 3-Riverine and Lumpini
Place Phahonyothin 32.
• Some operators that have launched
projects have found that the project
cannot be sold due to the economic
conditions and the COVID-19 epidemic.
They have halted sales and are waiting for
the situation to improve before resuming
sales. These include The Tree Charan-
Bangplad project, which was launched in
the middle of 2019 and only 20 per cent
has been sold; the developer, Pruksa Real
Estate, thus decided to close project sales
and postpone the new launch until a more
opportune time. They also transferred the
group of customers who bought units in
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BANGKOK CONDOMINIUM MARKET OVERVIEW 2019
this project to four other projects in the Prime Sukhumvit (Prime SKV): Petchburi Road:
area, to increase sales in the projects that This is the section of Sukhumvit Road This area covers Petchburi Road from
have already been launched and are fully between Soi 1 to 63 (North side) and Soi Nikhom Makasan intersection to the
ready for sale in the market. In addition, 2 to 42 (South side). intersection of Petchburi and the end
there are condominium projects from Sukhumvit Soi 63.
operators that have stopped their sales Central Lumpinee (CL):
due to the economic slowdown, such as The area encompasses Ploenchit Road Charoen Nakorn / Thonnburi:
the LK Tower project of Link Property, (end of Sukhumvit Road), to Rajdamri, This area stretches along the Chao Phraya
located on Nuanchan Road; and Mayfair Ratchaprasong, Wireless Road, Chidlom River from Krungthep Bridge to Krung-
Place Victory project of PTF Realty, Road, Soi Tonson, Soi Langsuan, Sarasin thonburi Bridge.
located on Vibhavadi Rangsit Road. Road, Rajdamri Road, Ratchaprasong
Road, Rama 1 Road and Phayathai Road. Bangsue / Tao Poon / Pracharat:
The area is popular with expatriates, This area covers Samsen Road, Thaharn
tourists and affluent Thais. Road, Pracharat Sai 1, Pracharat Sai 2,
Outlook
and Krungthep-Nonthaburi Soi 1-39 and
The condominium market in 2020 Charoenkrung / Narathiwad / Rama 3: Soi 2-50.
faces even more challenges than 2019. This is the area that stretches along
According to a survey among condomi- Charoen Krung Road of the Chao Phraya
nium sales offices in Bangkok, project River southward just past the Sathorn
visits decreased by 15 to 20 per cent Bridge, and to the north of Sipraya Road Bangkok Peripheral Area:
from last year. Due to COVID-19, all as well as the area along both sides of The three major areas under this classifi-
project development operators have had Narathiwas Road. cation are:
to exercise more caution. The forecast of
the real estate market this year is more Surawongse / Samyan / Siphaya: Eastern Bangkok:
difficult to devise than last year due to This is the area on Surawongse Road, This covers the following roads: Bangna,
the unpredictability of COVID-19 and how Samyan Road and Siphaya Road as well Srinakarin, Ramkamhaeng, Theparak,
long it will last. Knight Frank has examined as some parts of Rama 4, which are Romklao and Chalermprakiat.
the plans of 20 listed companies to located near the mentioned roads.
launch condominium projects, and it was Late Sukhumvit:
found that these 20 companies have This is the section of Sukhumvit Road on
adjusted their plans; there will only be 52 both sides after Sukhumvit Soi 105 and
condominium projects launched in 2020 City Fringe Area: 70, stretching to Samutprakran.
with approximately 13,000 to 15,000 units The area is located on the edge of the
entering the market. When combined with CBD, and provides easy access to Northern Bangkok:
the launch plans of small companies, the CBD. This area is an alternative This area covers the road along the
it is expected that there will be no more for condominium buyers due to the northern part of Bangkok, which include
than 20,000 newly launched units in convenient access to many shopping and Ngamwongwan, Chaengwattana,Rattana-
2020, reflecting more than a 65 per cent transportation centres. The City Fringe thibet and Sanambin Nam.
decrease from the new launches during Area can be divided into the following
the previous year. sub-areas: Southern Bangkok:
This is the area covering the followings
SKV 44-70 SKV 65-103: roads: Petchkasem, Ratchapruk, Kalapra-
This area encompasses the edge of pruk, Charansanitwongse and Wutthakart.
Location Definitions Sukhumvit Soi 65 to Sukhumvit Soi 77 as Late Ratchada / Ratchayothin / Late
Central Business District (CBD): well as the edge of Sukhumvit Soi 44 to Ladprao:
This is the Central Business District area Sukhumvit Soi 50. This area covers Ratchada from Soi 19
as well as the area that surrounds it; it is and Soi 30 to the end; Ladprao from
popular for expatriates, tourists and upper Ratchada / Rama 9 / Ladprao: Soi 25 and 30 to the end; Ratchayothin
class Thais for both for shopping and This is the area along Ratchadapisek Road; and Kaset Navamin, Ramindra and
residences. It also includes areas along Soi 1 to Soi 17 and Soi 2 to 28; Ladprao Nuanchan Roads.
the Chao Phraya River on Charoen Krung along Ladprao Soi 1 to Soi 23 and Soi 2
and Rama III Roads. The CBD Area can to Soi 28; and Rama 9 Road, covering the
be divided into sub-areas as follows: Ratchada / Rama 9 intersection to Rama 9
/ Wattanatham Road.
Silom / Sathorn:
This is the area that encompasses Phahonyothin / Phayathai:
Sathorn Road, Silom Road and the sois This is the up-and-coming area that offers
in between such as Sala Daeng, Nang convenient access to many academic
Linchee, etc. institutions and government agencies.
The area covers Phahonyothin Road
between Soi 1 to 15 and Soi 2 to 20.
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BANGKOK CONDOMINIUM MARKET OVERVIEW 2019
We like questions, if you’ve got one about our research, or would Recent Publications
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RISINEE SARIKAPUTRA
Director, Research and Consultancy
+66 (0)2643 8223 Ext 180
risinee.sarikaputra@th.knightfrank.com
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