Average prices for new and resale condo supply are projected to continue falling this year as the glut of unsold condos is overwhelming, with new units added to the stockpile.
Nalinrat Chareonsuphong, managing director of consultant Nexus Property Marketing Co, said average prices of new condo supply being launched in Greater Bangkok this year would decrease by 5%.
"New condo supply will remain low this year, with around 33,000 unsold condo units being completed that will add to unsold stock," she said.
The average prices of resale condo units should also decline, feeling pressure from newly-completed condo units this year, with prices dipping to levels last seen a few years ago, according to Mrs Nalinrat.
Nexus on Wednesday reported a year-on-year decrease of 11% in average condo prices in Bangkok to 126,909 baht per square metre in the fourth quarter last year, down from 141,800 baht the year before that.
The fall continued consecutively from the second and the third quarters with a drop of 16.6% and 4%, respectively.
In 2021, it will continue declining to 120,564 baht per sq m before resuming to 122,975 baht per sq m in 2022.
Mrs Nalinrat said the condo market last year continued its slow pace from 2019, dampened by the loan-to-value limits and high household debt, with the virus pandemic as a fresh negative factor in 2020.
The number of new condos launched in Bangkok last year dropped by 39% to 20,100 units from 64 projects, compared with 43,051 units in 2019 and a five-year average of 51,568 units.
There were also 5,800 condo units from 18 projects whose developers either suspended sales activities, delayed or changed the development plan, said Mrs Nalinrat.
"Last year condo buyers looked for ready-to-move units rather than off-plan units as prices are more attractive. This trend will continue this year," she said.
Real estate marketing firm Juwai IQI Group reported a price forecast of new and resale condos from a survey in the fourth quarter last year among 154 Thai real estate agents who worked with both local and overseas buyers.
Juwai IQI co-founder and chief executive Kashif Ansari said average prices of new and resale condos over the next 12 months will decline by 3.9% and 6.7%, respectively.
Rents will fall 6.9% this year before picking up 1.2% in the third quarter of 2022.
"For those looking for capital gains, 2021 represents an excellent opportunity to invest" said Mr Ansari.
"Prices have dropped, discounts are available and the market will likely take a sharp turn upwards after the pandemic is behind us."