Fear of Floods Affecting Demand for Low-rise Homes in Bangkok
Demand for low-rise homes and townhouses shows signs of cooling this quarter due to concerns about flooding.Because severe flooding occurred during the 2011 monsoon season in Thailand.
“After floods hit the North, the Northeast and part of the Central region in late August and September, homebuyers in the suburbs of Bangkok such as Nonthaburi and Pathum Thani are delaying their decision to buy in the last quarter of this year,” Samma Kitsin, director-general of the Real Estate Information Centre (REIC) of the Government Housing Bank, said recently.
Although residential demand is still rising, the focus is on condominiums rather than low-rise residences, the centre’s survey shows.
The REIC estimates 10,000-20,000 condo units will enter the market, bringing total new supply to 70,000-75,000 units this year.
The first nine months saw 58,000 new condo units compared only 29,000 new detached and townhouse units.
“We estimate new residential projects will add 120,000 units in Greater Bangkok this year, of which 70,000-75,000 are condos and the rest low-rise residences including single family homes and townhouses,” he said.
According to a survey by The Nation, most new residential projects launched in the second half of this year in the areas inundated in 2011 such as Nonthaburi and Pathum Thani are condos rather than low rises.
The Rangsit area has attracted more than 25,000 new condo units in the second half. They are developed by the top 10 listed property firms such as Pruksa Real Estate, LPN Development and Sansiri.
Nonthaburi has also had up to 10,000 condo units become newly available.