Crisis slows down condo industry in Bangkok

The condominium business in Bangkok, Thailand is currently slowing down in the first quarter of 2009 due to the global financial crisis and the political crisis in the Southeast Asian country.

Based on the latest data released by property consultant Knight Frank Chartered (Thailand) the level of new supply in the sector decreased by 36 percent q-o-q, with just 1,671 units launched in the first three months of the year.

According to the information released by Knight Frank Chartered (Thailand) it was also discovered that the take-up rate for new condominium units in the capital registered a slight drop, falling from 42 percent in Q4 2008 to 40 percent in Q1 2009.

Meanwhile, the selling price on the other hand showed a minor increase, gaining 1.1 percent in the first quarter.
The record showed that now the average selling price for condominium units in Bangkok’s central business district stands at Bt123,000psm, and Bt121,00 in the Sukhumvit area.

Furthermore, Knight Frank predicted new supply for the second quarter of 2009 is likely remain at a similar level as developers hold off on project launches in response to the depressed demand.
The firm added that the new launches that do go ahead are likely to be located along mass transit routes, and prices will remain flat.