2019 will be a year with significant changes in Bangkok’s property market, with slow growth in many sectors and incoming waves of new supply.
The race for rare sites is still hot with increasing land prices and scarcity of freehold lands in prime locations. However, with new regulations on the horizon, developers are taking a step back to assess the situation.
HIGH COMPETITION IN THE UPPER END OF THE CONDOMINIUM MARKET
CBRE is seeing many developers launching condominium projects with asking prices of over THB 300,000 per square metre and the new norm seems to be THB 250,000 per square metre. However, there will be winners and losers in the market, depending on their product positioning and price. With a lot of options in this segment for buyers to choose from, CBRE is seeing slow sales in many projects. Unsold units in completed projects are being offered at discounted prices to clear the inventory.
The new projects are not competing on price alone, developers have also been implementing other unique selling points in their projects to attract buyers. Home automation, rental management schemes, and mixed-use developments are some of the selling points in the market today. In this highly competitive market, CBRE believes that the winners will not be projects with the best room layouts or design, but those that can sell the right lifestyle at the right price.
Going forward, CBRE believes that 2019 will be a buyer’s market, an opportunity for end-users and long-term investors. Developers will be competing to transfer condominium units before the new mortgage regulations come into effect. Buyers will be able to choose from a wide variety of projects at discounted prices.