City's residential inventory tops 4 months
Play
Flood-hit areas will take longer as buyers remain wary: REIC
The inventory of residential units in Bangkok and its suburbs exceeds 62,000 – about four months’ worth in terms of sales – although projects in flood-hit locations are expected to take longer than that to sell, the Real Estate Information Centre (REIC) said.
According to a survey by the centre, as of June 30, the inventory of residential units in Bangkok and its suburbs stood at 62,981, or about 38 per cent of total residential units, which numbered 163,071.
Locations that were hit by flooding show high inventories, especially in Pathum Thani province’s Lum Luk Ka and Klong Luang, which reported an inventory of 9,914 against a total of 23,598 units. Pathum Thani’s Rangsit had inventory of 3,111 units against total residential units of 7,624.
Bang Bua Thong district in Nonthaburi province recorded inventory of 7,596 units – or 41 per cent of the total 18,576 units.
Among other residential areas of Bangkok affected by floods were Bang Khen-Sai Mai, with inventory of 4,679 units, or 54 per cent of the total 8,665 residential projects for sale; Bang Khae, with inventory of 3,227 units, or 42 per cent of the total 7,635; and Min Buri, with inventory of 6,298 units, or 36 per cent of the total 17,033 units.
Demand for residential units in the Central Business Districts (CBDs) of Bangkok has seen strong growth, with inventories below 30 per cent of total residential units.
For example, Sukhumvit Road from Soi 1 to Soi 55, Rama 1, Rama 4, Sathorn, Silom, Chidlom, Phloenchit, Lang Suan and Wireless Road had inventory of only 55 units. Ratchada-Lat Phrao had inventory of only 631 units, or about 24 per cent of the total 2,644 residential units.
The total inventory in the market now will take about 4.9 months to sell if the market does not see any new supply, REIC director-general Samma Kitsin said.
However, he believed that inventories located in flood-hit locations could take longer than this to sell because home-buyers were now wary of these areas.
Business Housing Association president Issara Boonyoung said the locations that faced floods would take six months to one year to recover because home-buyers are waiting to see how the government’s policy to manage future flooding pans out before making a decision to buy.
Meanwhile, property developers in flood-hit areas have redesigned their residential projects to respond to flood problems, and are renovating many of them before opening them up for sales again, according to Thai Real Estate Association president Kittipol Pramote na Ayudhya.
