In Q3 2020, the condominium market in Bangkok continued to experience negative impacts from the COVID-19 pandemic as the market had not fully recovered despite the spike in activities back in June and July 2020. Purchasing power of domestic buyers faced increasing pressure from the slow economic growth, while a positive foreign demand was hold back by travel restrictions.
The number of newly launched condominium units in Bangkok this quarter totaled 8,934 units, which decreased by 25.9% Y-o-Y. The condominium market in the midtown/suburban area remained more active in terms of the number of newly launched projects when compared to the downtown area.
As of Q3 2020, the average apartment occupancy rate was 82.8%; a decrease of 5.0 percentage points Q-o-Q and 9.9 percentage points Y-o-Y. This was the lowest occupancy ever recorded in our 20 years of tracking Bangkok apartment occupancy rate.
Six projects comprising 111 units were under construction, all in the Sukhumvit area with completion dates ranging between Q4 2020 and Q3 2021. As a result, total apartment supply in downtown Bangkok was forecasted to increase to 9,799 units by the end of 2020; an increase of 0.6% Q-o-Q and 1.5% Y-o-Y. By the end of 2021, total apartment supply in downtown Bangkok was forecasted to be at 9,872 units; a 0.7% increase from the current supply of 9,743 units.