Buoyed by the comeback of tourist arrivals and export growth, the condo market for the rest of this year is projected to fully recover, particularly the middle to upper-end segments, says SET-listed developer Supalai.
Managing director Tritecha Tangmatitham said the condo market resumed starting in the fourth quarter last year, with the number of walk-in customers rising by 15% year-on-year in the first quarter of 2022.
"Condo sales clearly recovered in the fourth quarter of 2021, resuming in the first quarter this year with our best results in five quarters despite a peak in Covid-19 cases during that quarter," he said.
Mr Tritecha said positive factors for the market early this year were the healthy number of foreign tourist arrivals in the first quarter, which rose 2,100% year-on-year and 30% quarter-on-quarter, while export growth was forecast at 7% in 2022.
Since late last year, condo units priced from 2-4 million baht have recorded improving performance as target buyers are salaried workers, while buyers in the upper-end segment have returned early this year, he said.
"Good sales in the condo market were among completed and ready-for-transfer units as the prices were rarely increased," said Mr Tritecha.
"Some buyers, particularly in the upper-end segment, took this chance to get a good deal before prices are pushed by new costs, affected by the Russia-Ukraine conflict."
In the lower-end segment, risks remain as buyers are worried about mortgage loan approval, he said.
On May 11, Supalai plans to launch Supalai Loft Phasi Charoen Station worth 1 billion baht, with 378 units sized from 30.5-88 square metres and priced from 1.89 million baht a unit.
Mr Tritecha said locations on Phetkasem Road along the MRT Blue Line had potential for growth as the landscape was changed by the mass transit line that started operation in 2019, reducing heavy traffic on the road.
According to the company's research, the price of vacant land plots on Phetkasem Road soared from 60,000 baht per square wah in 2010 to 120,000-150,000 baht in 2016-19, then more than 200,000 baht in 2020-22.
From MRT Tha Phra station to MRT Lak Song station, a distance of 7.5 kilometres, there were a total of 13 condo projects launched during 2009-21.
New launches during 2017-22 had a sales price of 74,840 baht per sq m on average, according to Supalai.