Content:
- Condominiums in Bangkok
- Office Property in Bangkok
- The Phuket Real Estate Market Situation in the First Half of 2022
Condominiums in Bangkok
The second quarter of 2022, saw the volume of offers in the condominium market in Bangkok reach 15,164 units. The number of new apartments sold grew by 470.3% compared to the same period last year (when 2,659 properties were put up for sale in the second quarter of 2021), which was a decrease of 6.7% compared to the first quarter of this year.
In central and suburban districts, new condominium launches rose to pre-pandemic levels during the second quarter. Real estate developers are simply keeping up with the demands of end-users within the country. However, the leading downtown condominium market had only a single new project launched, which is a luxury project of 217 apartments. Units of this class are generally oriented to foreign buyers.
The condominium market in suburban areas was more active than in the central parts, with 27 new facilities put into operation. This corresponds with pre-pandemic levels. This figure increased by 4% quarter-on-quarter and by 248% year-on-year. More than 40% of the units have already been sold in eight of the new condominiums.
The majority of new condominiums have an average price of 40,000 -75,000 TBH per square meter. These are class C condominiums. They accounted for 68% of the total number of condominiums for sale in the second quarter. 88% of Bangkok’s total condominiums were offered for sale in the suburbs, compared to 7% in the city (excluding the central region) and only 5% in the Central Business District or CBD.
Data collected for the second quarter showed that the main sales came from projects situated in areas with good urban infrastructure, near hospitals, transport, and shopping malls. Projects near educational institutions were also sold successfully.
A total of 15,164 housing units were sold in Thailand in the second quarter of 2022. This is 33.5% of the total number of apartments available for sale. This indicator dropped by 3.8% compared to the same period last year and by 10% compared to the first quarter of the current year.
In the second quarter of 2022, the average selling price of condominiums increased slightly. The approximate selling price for condominiums in the Central Business District of the capital was 239,955 TBH per square meter, which was the same indicator as the previous quarter. The average selling price for condominiums around the CBD was 116,115 TBH per square meter. This is 0.3% higher than in the previous quarter and 6% higher than in the second quarter of 2021. The average price in Bangkok’s suburbs was 63,815 TBH per square meter. This is 0.6% higher than in the previous quarter and 6.8% higher compared to the same period in 2021. The average apartment price across the country rose by only 0.3% compared to the first quarter. Prices are expected to rise by 2-3% in the third quarter due to inflation. Rising prices for materials lead to rising construction costs.
In the second quarter of this year, property developers have been launching new high-rise and low-rise projects regularly. A key factor that will drive condominium development in the future is the buyers’ good response in every segment.
The Bank of Thailand has announced a hike in interest rates to curb inflation. This may affect housing demand shortly.
In the second quarter of 2022, the number of tourists arriving in Thailand increased by 217.9% compared to the previous quarter, which grew from 497,693 in the first quarter of 2022 to 1,582,257 tourists between April and June. Such an influx has revived the kingdom’s real estate market.
Office Property in Bangkok
There are signs of recovery in the office real estate market. 40,107 m2 were rented out or purchased during the second quarter. As a result, office space occupancy rose to 86.7%, which is an increase of 0.2% quarter-on-quarter, while this indicator dropped by 2.0% compared to the same period in 2021. In Bangkok, the total supply of office space was 9,471,129 m2 in the second quarter of 2022.
The Phuket Real Estate Market Situation in the First Half of 2022
In Phuket, the real estate market is booming thanks to the return of tourists to the country. 215 new properties have been implemented under the VIP Great Hill Condominium project. In the first half of 2022, the indicator of the existing real estate supply on the island, 10,315 units, was 4.3% higher than the same indicator of 9,891 units in the first half of 2021. Currently, 3,715 units are under development and are expected to be completed by 2024. The majority of future projects are located in the Central West region, on the southwest coast, and the south coast. Demand for holiday condominiums has grown in Phuket. In the first half of 2022, 630 apartments were sold, which is 209% more than in the same period last year, when 204 apartments were sold, and 147% more than in the second half of last year which saw the sale of 255 apartments.
In the first half of 2022, the activity level in the Phuket villa market continued to improve compared to the second half of 2021. The number of cottage villages under construction has increased and villa sales have had good records, with some villa projects already sold out. During the pandemic, demand in the villa market was mainly driven by local buyers who purchased villas for personal use. Demand from overseas buyers has now begun to increase due to Thailand having eased the requirements to enter the country. In total, 130 villas were sold in the first half of 2022. This is 60.5% more than in 2021 and 113.1% more than in 2020.
In Phuket, six villa projects were launched in the first half of 2022, totaling 82 housing units. These projects are Rosewood Residences Kamala, Zenithy Luxe, Trichada Breeze, Grand View Residences Lagoon, The Menara Hill (Phase III), and Khanthasia Eden Hill.
