In 2021, the supply of new low-rise housing exceeded the supply of new condominiums in the Bangkok Metropolitan Region for the first time since 2011. In 2022, although the supply of low-rise housing increased by at least 25% compared to the previous year, there was also an increase in the supply of new condominiums, especially in the city center and suburban areas.
The market showed a high level of activity in general, and although most of the activity in the condominium sector was still focused on the suburban area, many developers positively assessed the plans to launch new condominiums in the center of Bangkok.
Despite this optimism, confirmed launches of condominiums in the city center remained limited.
A key feature of the low-rise housing market in 2022 was the growing number of launched luxury and super-luxury housing projects.
The effects of the pandemic have increased the demand for larger spaces that are better suited for working from home.
Most of the newly launched luxury and super-luxury housing projects in 2022 were concentrated in east Bangkok, mainly along Krungtep Kita, Pattanakarn, Srinakarin and Bang Na roads.
Examples of such projects are Milton Gates, the Alia Nature Reserve, Heritage Park and the Nirvana Collection.
The luxury and super-luxury market have proved resilient during the pandemic, and this year we will see even more luxury properties for sale, such as Grand Bangkok Boulevard from SC Asset and Narasiri from Sansiri.
Buyers are willing to live further away from the city in order to gain access to a larger living area of low-rise housing, knowing that such houses cost about the same as small condominiums in the city center.
On the contrary, in the condominium market in the city center, developers are cautious about putting new projects on the market, while existing unsold objects remain.
In addition to the competition between low-rise housing and condominiums, the market in the city center has been seriously affected due to the weakening of purchasing power, as well as due to fewer foreign buyers, especially from China.