Based on the report by Nexus Property Marketing Co, it is expected that the prices of condominiums in Bangkok will continue to increase but the rate is slower than usual.
According to the property consultant, the projected rate of increase of condo prices in Bangkok will be 7 per cent for this year which is lower compared to the 10.4 per cent rate last year.
Nalinrat Chareonsuphon, the managing director, revealed that the average price of the newly launched segment but are on the low-end is expected to only have an increase rate of 5 per cent for 2016.
She also added that the prices of the properties that have increased dramatically in the last few years will now increase at a slower rate because of the target client’s limited powers when it comes to purchasing.
She also shared that the buyers who are under the mass-market bracket is expected to only spend about 3 million baht for every unit which means that the selling prices of these units should not be far from the amount that the clients will be able to afford. The pries of the condos that are considered super-luxury, on the other hand, is foreseen to continue rising because the buyers within this bracket is not so much affected by the declining economy.
There is now a limited supply when it comes to the super-luxury units while there will be abundant supply when it comes to mass-market projects, added Mrs Nalinrat.
Nexus also foresees that the number of new constructed condominiums in Bangkok will reach a total of 50,000 units which is lower compared to the 53,500 available units last year coming from 111 different projects.
45,000 out of the total units will be available for mass market while the 4,500 units will be offered as high-end units and the remaining 500 units will be for super-luxury.
During the end of 2015, the total number of condominiums for sale in Bangkok market has risen by 14 per cent which is higher than the 2014 number of units with only 447,000