The condo market will rebound in the next few years with buyers prioritising price performance amid the economic slowdown, says SET-listed developer Supalai.
Managing director Tritecha Tangmatitham said the condo market saw a bigger impact from the coronavirus crisis than low-rise houses, as buyers were concerned about space and co-living.
"The impact on condos today is similar to what happened with the low-rise housing market in 2012," he said. "That year, market growth shrank as 95% of condo locations in Greater Bangkok were inundated in 2011."
In 2012, homebuyers shifted to condo units as the segment saw minimal impact from widespread flooding in 2011. The low-rise market picked up to normal in 2013.
Mr Tritecha said the condo market will follow the trend as lifestyles return to normal after a coronavirus vaccine is commercialised. Buyers will remain concerned about the economy and their money.
"Developers should seek plots in locations where they can develop a condo project with good price performance, as homebuyers' budget will be more important," he said.
Mr Tritecha said the property market in late April saw a rise in the number of customers visiting project sites.
Last month the number was better than last year's monthly average, showing higher consumer confidence.
"In the middle- to lower-end segment the market is improving, but the upper-end market remains sluggish as some business owners are reluctant to buy or change to a new house," Mr Tritecha said.
This year Supalai plans to launch a total of 30 new projects worth a combined 40 billion baht. In the second half, the company will launch 16 low-rise projects worth 13 billion baht.
Supalai will monitor feedback from the launch of a new condo project next month before launching four new condo projects worth a combined 8 billion baht in the second half.