Plus Property finds H1 condo prices gained 6 percent with price in Phaya Thai having made the most
23 ส.ค. 2018
ข่าวสารจากพลัสฯ
Plus Property, the full-service professional property and facility management agency, revealed the latest research findings for the condominium market pointing to a 6% average rate of price increase. Meanwhile, locations where new projects have made the highest gains in price are led by Phaya Thai, Pahonyothin and outer Sukhumvit. Downtown areas such as Phloen Chit and Chit Lom retained the crown for the highest property prices. The middle and high market continues to see momentum, with an average sale of 48%. In Ratchadaphisek, a plentiful supply of new rooms has entered the market to tap into demand from Chinese buyers. PLUS is expecting the property market to retain its course in the latter half, when public sector investment will give boost to buyers’ confidence over large mixed-use development projects throughout Bangkok.
Mr. Anukul Ratpitaksanti, Managing Director, Plus Property Company Limited, the full-service professional property and facility management agency, revealed findings from PLUS’s research and development division, which shed light on the latest overall picture of the condominium market. Prices in all segments of the condominium market continued to rise although new projects were not being fervently launched. The average price for every segment has risen by 6% from the same period of the previous year – from an average of 100,000 baht per square meter to 110,000 baht per square meter.
The three localities with the highest increases in the price of new projects include Phaya Thai, where the price has risen 9% to 160,000 baht per square meter; Phahonyothin, where the price has risen 8% to 140,000 baht per square meter; and outer Sukhumvit, where the price has risen 8% to 90,000 baht per square meter. Condominiums in the Phloen Chit-Chit Lom area retains the crown for highest average offer price, at 260,000 baht per square meter. This is a slight increase from the same period in the previous year when the average offer price stood at 250,000 baht per square meter.
The second-most expensive locale is inner Sukhumvit, where the average offer price stands at 200,000 baht per square meter – increasing from 190,000 baht per square meter in the same period of the previous year. Projects in the middle and high segments which were priced between 130,000 and 300,000 baht per square meter have generated an impressive sales figure of 48% on average. Condominiums with the highest average sales remain those which tailored to the middle and high markets in the Phloen Chit-Chit Lom zone, Silom-Sathorn zone, outer Sukhumvit zone and Ratchadaphisek zone.
In the first half of 2018, some 44,000 condominium units at 69 development projects were completed. For the latter half, it is expected that 70,000 units at 135 development projects will become completed. It is thus projected that for the entire year, 114,000 units from 204 property projects will be completed. Total combined supply from pre-existing and new projects stood at 78,000 units in the first half of 2018. Of this amount, 28,000 units have already received demand response, translating to sales of 37%.
From the perspective of offer price, projects within the lower price range had a sales percentage of 33%; projects within the meddle price range had a sales percentage of 35%, and projects within the middle-high price range had a sales percentage of 48%. These figures are a reflection of household debt; although said debt has been decreasing, financial institutes maintained strict criteria for credit release – the purchasing power of consumers in the lower price range and middle price range has been hampered as a result. Sales in some localities have improved this year - these improvements were generally a continuation of an existing growth. Said localities include the inner zone of Bangkok, the Phahonyothin zone and the Bang Sue zone.
The aforementioned growth is limited to the middle-high segment. Meanwhile, investment-oriented buyers remain attracted to locales considered to have high potential. This is especially true for the Phloen Chit-Chit Lom locale where such purchases have increased by 750 units (145% increase). In Phahonyothin such purchases increased by 1,200 units (75% increase), and in Ratchadaphisek such purchases increased by 1,300 units (50% increase) - both of these zones were being boosted by the extension project for the Green Line, and the Orange Line electric train project. Demand within these locales has, therefore, risen no less remarkably than that for the inner zones of Bangkok. The concreteness of the Bang Sue central station project, which will become the hub for several electric train lines, has resulted in investment-oriented purchases here to increase by 300 units or by 30%.
“Although new projects were not being launched relentlessly, continuation of growth was observed. Said growth has the same characteristic as that observed over the past 2-3 years, during which the middle-high market grew well whereas the middle-lower market was afflicted by economic factors. Nonetheless, we believe the economy will continue to grow in the second half of the year, owing to clarity over public sector investment and the tendency for import-export activities with trading partners to continue growing. For the entire year, the property market is expected to grow more than the previous year. This would be attributable to large mixed-use projects dotting the perimeter of Bangkok; they are expected to stimulate demand, even against the factor of interest rates possibly going up in the fourth quarter in line with the world market. However, we view that any such rise would be marginal and might even have the effect of spurring people to make their purchase decisions before the mortgage rate gets adjusted upward”, said Anukul.
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