According to a Colliers International
Thailand survey that was just recently completed,there has been a sharp decline in the number of new
condominium projects in the first nine months of 2019. The slowing of the global economy, trade wars and also political issues were all partially responsible for this.
The recent survey said 71 condo 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 Colliers survey found that many of the
condominiums launched in the first half of this year were purchased by foreigners, especially the Chinese.
A spokeman from Colliers told
Thailand Condo News, “The district where most of the companies launched their projects was Huai Khwang, with 3,247 condo units. In this area, the Chinese investors focused on buying projects in CBD areas such as locations along the Rama IX to Ratchadaphisek roads”.The close proximity fo the Chinese Embassy coupled with numerous shopping malls along the Ratchada stretch and also the nightlife, attracted the Chinese consumers.The underground MRT serving Ratchada also contributed to this trend.
Pertaining to 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.
Another growing area, 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.
Almost 70 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. Colliers 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.
Unfortunately, take up rates by local Thais remained low due to difficulty in locals getting bank loans and also due to lower consumer confidence and purchasing power by Thais as the local economy keeps on spiraling into a lower and worst state with no sight of recovery to date.
