Condo prices in Bangkok have continued to rise, with lower Sukhumvit experiencing the highest increase, while those in neighbouring provinces dropped, primarily due to the large number of remaining unsold units.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said there had been a year-on-year increase in the price index of new condo units available for sale in Bangkok for four consecutive quarters since the first quarter of 2023.
"The condo price index in Bangkok is experiencing an upward trend," he said. "The area with the most significant increase was lower Sukhumvit in the price range of 7.51-10 million baht per unit."
It was followed by the Thon Buri area in prices ranging between 3.01-5 million baht and the Lat Phrao-Wang Thong Lang-Bang Kapi zone in a price range between 3.01-5 million baht.
According to REIC, the price index of new condo units available for sale in Greater Bangkok (Bangkok, Nonthaburi, Samut Prakarn) rose 2.7% to 154.3 in the fourth quarter of 2023, compared with the corresponding period of 2022.
The key driver was the price index of those in Bangkok with an increase of 3.5% to 157.3. When compared with the third quarter, it dropped by 0.5% from 158.1, which was a consecutive decline as developers offered campaigns to boost sales at year-end.
Mr Vichai said the price index of condo units in Bangkok's two neighbouring provinces, Samut Prakan and Nonthaburi, had a year-on-year drop for five consecutive quarters since the fourth quarter of 2022.
"The decrease largely resulted from the large number of unsold units remaining at existing projects launched for sale before 2021. These projects had construction costs of building materials and labour costs that had not been revised up," he added.
With the previous construction costs, developers were able to offer discounts or campaigns to boost sales in the fourth quarter of 2023. In this quarter, cash discounts and freebies were applied as a key sales strategy, accounting for 71.5% altogether.
REIC reported that the condo price index in Samut Prakan and Nonthaburi in the fourth quarter of 2023 was 141.2, down by 0.9% year-on-year and down by 0.2% from the third quarter of 2023.
"The condo price index in these two provinces continues to decline due to consecutive year-on-year decreases in prices for five consecutive quarters, from the fourth quarter of 2021 to the fourth quarter of 2022," Mr Vichai said.
The area with the most significant decrease was Muang Samut Prakan-Phra Pradaeng-Phra Samut Chedi in a price range between 1.01-1.5 million baht per unit.
It was followed by Muang Nonthaburi-Pak Kret in a price range of between 2.01-3 million baht and Bang Phli-Bang Bo-Bang Sao Thong zone in a price range of between 2.01-3 million baht.
These zones are characterised by high competition and have a reasonable number of unsold units available.