The Bangkok condominium market enjoyed continued good growth in the first half of this year, with an increase of 11% year-on-year in the number of newly launched units despite the market cooling in the second quarter.
The property consultant Colliers International Thailand said condo units launched in the first half numbered 28,637 units - 16,071 in the first quarter and 12,566 in the second quarter.
In the second quarter, 45% of new units were located in areas along the existing skytrain and subway lines.
Locations along and connecting with Phahon Yothin and Ratchadaphisek roads had the highest number of 2,030 units or 16% of the total.
Associate director Surachet Kongcheep said areas far from existing or under-construction skytrain and subway stations had many available land plots at reasonable prices.
All developers needed to develop condo projects in the middle-market to low-end bracket, the largest target group in Bangkok, so suburban areas were the most fashionable for development in the first half.
In the first six months, 14,440 new condo units were completed and registered in Bangkok, while 369,400 units already existed.
Some 66,800 units are scheduled to be completed in the second half.
"Many condo projects delayed their completion dates due to the labour shortage. The number of under-construction units scheduled to be completed in 2013 is the highest on record," Mr Surachet said.
The average take-up rate for city condo projects in the second quarter was 74%, the highest in recent quarters, with some projects sold out within a few days of their launch, especially those by listed developers.
The largest target customer group was low- and middle-income earners, who sought units priced less than 3 million baht.
About 40% of new launches in 2012 and the first half of this year had prices ranging from 40,000 to 60,000 baht per square metre.
They mostly targeted the low-end to middle-market segment, with an average price of less than 3 million baht for a one-bedroom condominium unit sized 35 sq m.
The average price of newly launched units in the first half increased by 7% from those launched last year due to a range of factors affecting construction costs.
Many condo projects were launched along the new mass transit lines.
However, some areas along the lines still have many housing projects available for sale, especially along the Blue Line.
Many housing projects have been launched since 2009 and increase in number each year.
The Lands Department said about 90% of units launched last year were two- or three-storey townhouses.
Most projects had a high take-up rate, although the average price ranged from 2.5 to 5.5 million baht.
Locations within a one-kilometre radius from the Blue Line are still available for small housing projects, especially townhouse projects covering 15-30 rai.
Most Thais prefer to live in housing developments with land even at the expense of not being close to mass transit stations.
This means that all condominium projects with selling prices above 2.5 million baht in these particular areas will be competitive with townhouse projects.