Nowadays the prices of construction materials rise due to inflation. This will lead to higher prices for condominiums in 2022. The highest price is still in the central area - the average price is 2,400 THB / m2.
Condominium prices are under pressure from all directions, from the inability to adjust the price because buyers still depend on the economic downturn due to the COVID-19 pandemic, to the prices of construction materials that are adjusted with inflation in 2022. New condominiums launched in 2022 still belong to large real estate developers, reaching 70%.
Apartments listed for sale in the first quarter were in the price range from 900,000 to 3,500,000 THB. If divided by class, then these are:
- Class C Condominium - 63%.
- Class B Condominium - 37%.
This shows that real estate developers prefer to sell apartments at a price around 80,000-100,000 THB/m2 on average, because this property has attracted the attention of a group that is the main buying force now.
The sales level has decreased because of recently launched projects. The number of new housing units is bigger compared to the number of sold ones.
Most buyers belong to the middle class of purchasing power with a stable income. And the projects open for sale are located in the suburb, which is the main residential area. Buyers who choose housing units for long-term residence are interested in projects in the price range of no more than 3,000,000 THB.
The Bangkok condominium sales price level declined in the 4th quarter of 2021 as followed:
- Prices for central business districts decreased by 4.6% per year to 239,689 THB/m2.
- Prices in areas around the central business district decreased by 6.3% less per year and was 115,659 THB/m2.
- The cost of suburban areas decreased by 8.2% year on year to 63,258 THB/m2.
It is connected to the fact that some projects have been put up for sale for a long time and still have not found their buyer. However, apartment prices are still expected to rise because of inflation.
In 2022, the condominium market will recover gradually and become more active. Because big developers have plans to launch more projects. It is expected that about 10,000 objects will be brought to the market on average in the first quarter of 2022.
However, the outbreak of the Omicron strain of Covid-19 continues to be of concern. As a result the number of deaths and critically ill patients increased significantly. This could lead to the order to reintroduce the quarantine issued by the government. Another risk factor is inflation, which will affect the prices of consumer goods. It means the price of construction materials will rise during the economic downturn.