Residential Launches Down, Value Up
According to the Agency for Real Estate Affairs, the number of residential projects launched this year will be down by 1% from 2014, but the value will increase by an astonishing 30%.
During the first half of 2015, about 56,548 units were launched of which 66% were condominiums, 22% townhouses, and 8% single houses. In 2015, the number of new units launched is expected to reach 112,776 (114,094 last year). However, the total value of these units is thought to increase up to THB449 Billion as compared to THB334.5 Billion in 2014.
Actually, these figures mainly come from the high-end segment as the number of new units priced at THB10,000,000 up is supposed to grow by a terrific 165% in 2015 to 6,165 units. For these luxury properties, their total value is thought to reach as much as THB140 Billion in 2015, an astonishing 281% increase from only THB36.78 Billion last year.
The high-end segment seems to be the market that is truly healthy at the moment. Branded developers able to develop luxury properties in Bangkok CBD and other prime locations enjoy very high absorption rate and their pre-launches enjoy strong sales as well (above 60% sold in one day). Central locations remain the ones property buyers are most confident about. Although the outer Bangkok is developing well, Bangkok CBD stays as the main hub and most demanded area for property purchase.