Townhouses, condos to maintain appeal, says Plus Property
Plus Property, a property-management arm of Sansiri Plc, predicted this week the markets for townhouses and condominiums would continue growing, citing momentum in the middle and high segments of purchasing power, especially for high-rise condos and townhouses on Bangkok’s outskirts.
Meanwhile, owing to easy commutes and better locations, consumers are increasingly switching to condominiums, with the main buyers now including families and people nearing retirement.
Managing director Anukul Ratpitaksanti said Plus Property expected the real estate segment in 2018 to continue in the same direction as last year.
Total sale of condominiums, townhouses and detached houses stood at 95,723 units in 2017, which was a 4-per-cent contraction from 2016.
Although growth was good in the first half of 2017, the sale of detached houses continued to slow, owing primarily to household debt remaining high.
Although consumer confidence continued to increase, having reached 33.9 in December 2017, it was still lower than the consumer confidence index’s standard level of 50.
This may have caused a situation of low purchasing power, as consumers remain unassured of the domestic situation at present.
This is especially true for the lower-priced segment of the condominium market, which represents the primary type of supply in the market. In addition to the factor of debt concerns, consumers are also deterred by the tightening of credit issuance by lenders; it has become more difficult for loans to get approved.