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Sharp decline in new condo projects in first nine months of 2019

Oct 26. 2019
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By THE NATION

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There has been a sharp decline in the number of new condominium projects in the first nine months of 2019, according a Colliers International Thailand survey.

he survey said 71 projects were launched in the Bangkok area with the 29,132 condo units worth Bt170 billion, 16,008 units or 35.5 per cent lesser than in the previous year.

The survey found that many of the condominiums launched in the first half of this year were purchased by foreigners, especially the Chinese.

“The district where most of the companies launched their projects was Huai Khwang, with 3,247 condo units,” said the company. “In this area, the Chinese investors focused on buying projects in CBD areas such as locations along the Rama IX to Ratchadaphisek roads”.

Regarding the areas around along the mass transit railway line, the survey found that 12,426 units or 42.65 per cent were developed along the BTS line in the first nine months of the year, while condominium units along the MRT line were 6,407, or 22 per cent. About 10,300 units, or 35.5 per cent, were in the areas of under-construction railway lines and other areas.

In addition, when looking closely at the stations of both the BTS and MRT lines, most of the condominium projects were launched around the Talat Phlu station -- 2,872 units -- with Bt9.242 billion investment value. The other station where most of the projects were crowded were around Punnawithi, with 1,555 condominium units worth Bt12.496 billion investment value, and the third station was Ratchathewi, with 1,417 units and investment value of Bt17.200.

“Over 65 per cent of the projects developed were by big property entrepreneurs listed in the Stock Exchange of Thailand as the land price around the BTS and MRT stations rose steeply,” the company explained, adding that this caused “small and medium-sized entrepreneurs to recede from this expensive competition to invest in cheaper areas or areas along the new railway stations that are under construction”.

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