Condo development and bargains are spreading to the peripheries

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Condo development and bargains are spreading to the peripheries

Projects are creeping outward from the city centre thanks to the greater access provided by rail systems, but for the foreseeable future oversupply is likely to keep prices low in the suburbs

Published: 2 Sep 2012 at 02.50
Newspaper section: Spectrum

Launches of new condominiums slowed in Bangkok last year due to the growing scarcity of land for development in areas where demand is strong, while flooding late in the year also curtailed most activity in the property market.

In the first half of this year, 1,898 condominium units were launched in the central metropolitan area, while another 1,500 are expected in the second half. This limited new supply, coupled with strong demand, will push up the selling prices of condominiums in the city area, as defined below.

Already we are seeing prices as high as 170,000 baht per square metre for good quality leasehold units in the highly desirable central Lumpini area. This is about the same as a freehold condo in the Sukhumvit area, whereas in central Lumpini freehold units can cost 220,000 baht per sq m or more. The table shows where the new city condominium launches are expected to take place in the second half of 2012.

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thailife69
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Discussion 3 : 02 Sep 2012 at 13.553
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D2

I must be that fool. I keep what I really want to say out of BP. Only the misinformed would make such ignorant comments.

The majority of Condos built during the last 6 years were built for middle class Thai's. The foreign market has been non-existent. 51% of a Condo must be owned by Thai's, there is a healthy resale market.

As an investment, over 10% return can be realised from rental.

Six years ago B Grade properties sold at say 50,000 baht/m2, today they sell at 100,000 baht/m2.

Do the maths; a property purchased for 5 million returning 10% PA = 500,000/year x 6 years = 3 million.
Resale at 10 million = 5 million profit

Total Return on investment = 8 million, equal to a 33%/year return on investment.

Who's the fool????????
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drsmith
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Discussion 2 : 02 Sep 2012 at 12.472
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Only a complete fool would buy a condo in Thailand never understanding that there is an almost non-existent market for used homes. 99% of the Thai's I know have stated they would never ever purchase a previously owned home or condo. As an investment, it is a poor choice. The reason Thailand allows foreigners to purchase condo's is for the sole benefit of the rich and power developers. If these developers had to depend 100% of Thai's to buy their units, most would be empty as Thai's relish land ownership and not living in a concrete box.
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rontorr
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Discussion 1 : 02 Sep 2012 at 12.181
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I think we are getting ready for another crash like in 1997. Tone of the main problems then was the overbuilding of hotel, condos, and Moo Bans, when there was already a very high un-occupancy rate
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Condo development and bargains are spreading to the peripheries | Bangkok Post: news