New residential housing supply launched in Greater Bangkok in the second half of this year may struggle to find takers if the amount is greater than anticipated, warns the Agency for Real Estate Affairs (AREA).
Sopon Pornchokchai, president of the property consultant, said based on information from listed developers, the number of new housing projects planned for launch in the second half will be higher than expected.
''The housing market in Greater Bangkok continues to grow so significantly that it may lead to an oversupply in the future,'' he said, suggesting that state agencies and related associations should monitor the situation closely.
Mr Sopon said measures to prevent an oversupply could include higher down payments or a lower loan-to-value ratio.
The AREA said new housing launched in the first half totalled 62,044 units worth a combined 174 billion baht, up by 22% year-on-year.
It expects 124,080 new homes worth 344 billion baht to be launched in all of 2013, up by 15% from last year.
Meanwhile, housing sales will reach 115,480 units, up by 7.5%.
The end of the first half saw 133,238 housing units remaining for sale, making up 3% of total supply in Greater Bangkok.
The average unit price of new supply in the first half was 2.78 million baht, down from 2.94 million baht last year and 2.98 million baht in 2011.
''The decrease in average unit price was not due to a discount in housing prices but rather most were smaller units as developers wanted to appeal to a wider group including speculators,'' said Mr Sopon.
The largest new supply was units priced between 1 and 2 million baht, some 47% or 29,000 units. In this price range, 20,000 units were condos.
Of overall new supply in the first half, 64% consisted of condos, followed by townhouses (21%) and single houses (9%).
Most single houses were priced between 3 and 5 million baht each (3,357 units), while most townhouses were 1 to 2 million baht each (8,246 units).
A total of 107,412 homes were sold last year, 31% higher than in flood-hit 2011.