Bangkok area to see condo supply growth

Bangkok area to see condo supply growth

Transit lines expected to boost market

The view from Baiyoke Tower II. According to the REIC, there are a total of 63,658 unsold condos across Bangkok and its five neighbouring provinces. PATIPAT JANTHONG
The view from Baiyoke Tower II. According to the REIC, there are a total of 63,658 unsold condos across Bangkok and its five neighbouring provinces. PATIPAT JANTHONG

The Greater Bangkok residential condominium market will continue growing with strong demand in locations near mass transit lines, driving supply in Nonthaburi and Samut Prakan provinces, says property consultant Colliers International Thailand.

The condo market in these two provinces has benefited from the extension of mass transit lines, said Surachet Kongcheep, director of research at Colliers Thailand.

"The condo sales rate in Nonthaburi is healthy at 71%, but the number of unsold units is quite high at 13,800, the highest of the five provinces neighbouring Bangkok," said Mr Surachet.

The Real Estate Information Center (REIC) reported the number of unsold condos in Bangkok and five neighbouring provinces totalled 63,658 units from a total of 242,852 units at 437 projects in the first half this year.

The five neighbouring provinces are Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom.

The largest number of unsold condominium units were in Bangkok with 34,199 units, followed by Nonthaburi (13,866 units), Samut Prakan (8,725 units), Pathum Thani (5,434 units), and Nakhon Pathom (1,036 units).

The sales rate of condominium units in Samut Sakhon was at 73%, 70% for Nakhon Pathom, 66% for Samut Prakan and 60% for Pathum Thani, said Mr Surachet.

"Attractive locations for property development in the five neighbouring provinces should be near mass transit lines, close to commercial zones, and near expressways," he added.

Mr Surachet said Samut Prakan has many amenities, including large shopping centres, office buildings, the BTS skytrain, and Suvarnabhumi airport.

"Provinces neighbouring Bangkok have continued to grow. The most attractive locations are those along the mass transit lines," he said. "Single houses and the townhouse market will expand, while condos attract in interest in some locations."

Peerapong Jaroon-ek, chief executive of SET-listed developer Origin Property Plc, said Samut Prakan is one of the areas with the highest potential for development due to proximity to Sukhumvit Road and BTS skytrain.

"Residential demand in Samut Prakan comes from both people working in the province, mostly in the industrial sector, and those working along Sukhumvit Road," he said.

According to REIC, the number of residential projects in Greater Bangkok, where at least six units still remained for sale totalled 1,563 sites, with a combined 451,089 units in the first six months.

Of the total supply, 141,877 units were unsold. The largest unsold number was condos, with 63,658 units, followed by 41,451 townhouse units and 25,356 single house units.

Vichai Viratkapan, REIC's acting director-general, said the sales rate of low-rise houses, including single house, townhouse, duplex house and shophouses was 62%, with a decrease in value of remaining units for sales to 328.47 billion baht from 340.14 billion baht.

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