New condominium supply in August and September outpaced unit launches in the first half, driven by projects from large property developers that expressed stronger confidence in the market's prospects.
A high-rise condominium is under construction in central Bangkok. Large property developers say the supply of this type of residence is on the rise. In August and September, newly launched condo supply from seven listed developers reached 70 billion baht compared with 54 billion in the entire first half. PATTARACHAI PREECHAPANICH
Prasert Taedullayasatit, president of the Thai Condominium Association (TCA), said the momentum would help to shore up overall housing market value for a full-year decline of less than 10% after a sharp drop of 21% in the first half.
"New condo projects launched two months ago were mostly ones planned for launch late last year and the first half of this year," he said. "They were pent up due to the political crisis."
In August and September, newly launched condo supply from seven listed developers reached 70 billion baht compared with 54 billion in the first half.
The seven are Pruksa Real Estate, Land and Houses, Supalai, AP (Thailand), Noble Development, Property Perfect and Ananda Development.
The TCA expects full-year housing market value to reach 310 billion baht, down by 5-10% from last year, before rising to 350 billion next year.
Mr Prasert, also managing director of Pruksa Real Estate, said his company's sales rose each month after the political crisis faded, with 13 billion baht in the third quarter alone versus 18 billion in the first half.
Samma Kitsin, director-general of the Real Estate Information Center (REIC), said listed developers whose combined market share was greater than 50% were confident the economy would improve significantly next year.
The REIC's index of housing developer expectations over the next six months, surveying listed developers, revealed high confidence of 75 points, up from 71.6 in the second quarter.
The index of non-listed housing developers was unchanged at 63 points. Respondents comprised 30 SET-listed firms and 136 non-listed companies.
To boost sales in the fourth quarter, the TCA, Housing Business Association and Thai Real Estate Association will host the House & Condo Fair at the Queen Sirikit National Convention Center in Bangkok from Oct 9-12. Sales worth 4 billion baht are expected from the event.