Property DNA indicates that in the first quarter, real estate developers flock to low-rise condos. The price is not more than 1 hundred thousand baht per square meter, up to 77%, supporting the low-income market, ready to pin the opening of projects along the lines of the sky train routes that have been opened for service. The trend of the condo market is expected to improve.

Mr. Surachet Kongcheep, managing director of Property DNA Co., Ltd., said that there were 4,920 new condos launched in the first quarter of 2023, a decrease of about 57% from the fourth quarter of 2022. Many projects opened Officially sold in the first quarter of 2023, there is an unofficial sale. Or have signed up to show interest since the end of 2022, and there are many other projects that are open for sale informally in the first quarter of this year. Waiting for the official sale after this

Most of the new condos launched in the first quarter of this year are located in areas where the sky train line is already open, but only 1 project is located in the inner city area. The rest is outside the inner city area. Because entrepreneurs want to sell condo projects with prices that are not very high. In order to be consistent with the purchasing power of the majority of people in Bangkok.

Mr. Surachet said that 13% of condos launched in the first quarter were in areas along the line under construction. And waiting to open for service in 2023 and another 14.4% only open for sale in areas outside the electric train route both at present and future projects Which is still not different from the past 1-2 years, but clearly different from the period before 2020 because at that time There are new condo projects launched in almost every area of Bangkok including the inner city areas of Bangkok.

"Condo market in 2023 may not recover much compared to the previous year because of purchasing power And many negative factors still affect the decision to buy a house of Thai people. But the confidence in buying housing of Thai people from the survey of the Center for Economic and Business Forecasting. The University of the Thai Chamber of Commerce has been increasing continuously since the middle of last year."

Mr. Surachet stated that before the year 2020 obviously Entrepreneurs open sales of condo projects that are buildings with a height of 8 floors or less in the proportion of less than 50% compared to the total number of condo projects opened for sale in that year clearly, but the proportion begins to change in Year 2020 Since then, new condo projects launched during the year 2020 – 2022, it is clear that operators choose the area in the alley. or in areas with not very high potential because they want to develop a condo project with a price that is not very high, so choosing to buy land in the alley or in a location with not very high potential will get land at a price that is not too high to be consistent with purchasing power and economic conditions that have not yet recovered

Although condo projects with 8 floors or less have lower project value than projects developed in high-rise buildings. but with market conditions and purchasing power has not yet recovered Entrepreneurs also need to adjust accordingly. In order to have a project that corresponds to the changing purchasing power.

Average sales rate of newly launched condos in the first quarter of 2023 may not be very high compared to the previous period But more than the last 2-3 quarters and more than 50% again, showing that some purchasing power has started to return. After diminishing in the previous period In addition, the fact that most developers choose to launch condominium projects with not very high selling prices also contributes to making buyers pay attention to the condominium market again.

The launch of condo projects in the first quarter of this year, there are many projects that are open to those who are interested in signing up to show their interest in buying. and sign up to receive special privileges from operators including opening a sales office and a sample room for those who are interested to visit first together with public relations through various channels during the same period which various processes All are stimulating interest. There are reservations and contracts to buy and sell a lot. Some projects in some locations are closed for sale. Or have a very high sales rate in the open sales shortly after the sale.

Most condo projects launched during 2020 - 2022 have a clear proportion of the selling price below 100,000 baht per square meter. while other selling price levels a much smaller proportion Before the year 2020 There are also condos that have sales prices that cover more price ranges. Although the proportion of the price level below 100,000 baht per square meter is greater.

first quarter this year Condos that sell for less than 100,000 baht per square meter still have a significantly higher proportion than condominiums at other price levels. with a proportion of about 77% compared to condominiums in various price levels This resulted in the average selling price of newly launched condominiums in the first quarter.

In 2023, the average selling price was slightly lower than the previous quarter.

"If considering only condos in the price range below 100,000 baht per square meter It was found that condominiums priced below 70,000 baht per square meter accounted for 51% of the total 3,810 units."

The average selling price of condominiums in the past several quarters has been in a steadily declining direction since the beginning of 2019. There may be an increase in some quarters. However, in the overall picture, it has been continuously decreasing. clearly shows that Entrepreneurs launch new projects at lower prices continuously.

Summary and future trends

 Condominium market in 2023 has a better direction from the year 2022

 Entrepreneurs choose locations that are along the lines of electric train routes that are already open for service more than other locations.

 Condominium prices under 100,000 baht per square meter still have a higher proportion than other price levels.

 Foreign buyers are one of the main hopes of entrepreneurs.

 The average sales rate of condominiums this year is definitely higher than the previous year.

 Expensive condominium projects begin to launch more new sales in 2023

 The condominium market for the rest of this year is definitely better than last year.

Source:https://www.bangkokbiznews.com/property/1065044

Date 26/4/2023