October 28, 2016

Market slows as launches face delays

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Greater Bangkok's property market is set to slow down in the fourth quarter as the launches of 4,000 condo units are expected to be postponed until next year due to unfavourable market sentiment.

Samma Kitsin, director-general of the Real Estate Information Center (REIC), said yesterday many condominium developers have put off new launches in the last quarter to next year.

"Market sentiment is unfavourable so the new condo supply has been held over. But single house and townhouse supply will keep launching as it can be launched on demand," Mr Samma said at the REIC's annual seminar.

REIC estimated there will be around 20,000 residential units newly launched in the fourth quarter, down from 24,000 units earlier planned and 29,000 units launched in the same period last year.

Overall, the number of new residential units to be launched in Greater Bangkok this year is estimated at 94,000 units, comprising 52,000 condo units and 42,000 units of single house and townhouses, down from 107,000 units last year.

During the first nine months of 2016, the number of new residential units launched in Greater Bangkok totalled 70,200 units from 313 projects, down 8.7% from 76,900 units from 318 projects in the same period last year. Of the amount, 37,200 units were condos, a 17% decline from 44,900 units, while 33,000 units were low-rise houses, a slight increase of 3%.

Yotsawat Rungkhanawuti, president of the Phitsanulok Real Estate Association, said like other provinces nationwide Phitsanulok's property market remains tepid in line with the country's economic condition.

However, there are many opportunities as the government has been revving up infrastructure development.

Phitsanulok itself is also a strategic province located on an intersection where the Bangkok-Chiang Mai high-speed rail would pass.

There are around 40-50 residential developers in Phitsanulok. The most popular residential units are single houses priced from 3-5 million baht while condos are becoming more acceptable among consumers.

Channarong Buristrakul, president of the Khon Kaen Real Estate Association, said the province's property market has also slowed down, but new mass-transit development by the private sector is expected to give a boost to the market in the near future.

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