Condo sales suffered in Q3

Just 3,000 units were launched in the third quarter, down 74 per cent from 11,600 in the second quarter and the lowest number recorded in the past three years. The incentives favour properties that are already under construction and can be completed before the end of next year, as that would prove to be an extremely challenging time-frame for any newly launched condominium project.

Tony Picon, associate director of research, said last week that buyers are waiting to see the full picture emerge before stepping in, and developers are taking note and delaying launches.

Surachet Kongcheep, senior manager for research, said more than 25,700 units are scheduled to be completed this quarter. Even though launches were down, pent-up demand is expected by developers in the future. 

Patima Jeerapaet, managing director of Colliers, believes that the various actions of governments over the course of the year have had a detrimental effect on the condo market.

“First there were cooling measures adopted at the beginning of the year as a precaution against a supply bubble forming and now incentives aimed at stimulating the market are having a contrary short-term effect.” However, “the market will bounce back with a vengeance as the demand for units is real and developers are just deferring”.