Thailands Condo Market has been thought of as overbuilt, and a bubble waiting to pop.
Not only is development still going strong but units continue to sell and not just in places like Pattaya, Jomtien Beach, and Hua Hin but also the nations capital.
Check out this article from National News Bureau of Thailand
Condo sales in suburban Bangkok reach new high
BANGKOK: -- According to property experts, the average sales price of condo units in Bangkok's outer areas is set to soar by nearly 50 percent but condo supply in general will dwindle by next year.
The growing popularity of condominiums in suburban Bangkok is due to the expansion of the mass transit system from the central business districts to the suburbs and the safety from flooding which damaged many areas of Bangkok and other provinces in 2011.
The extension of the mass transit network, especially along the skytrain line from On Nut to Bearing, has fuelled growth in condo supply. Continual increases in condo prices were reported in six locations, which include Khae Rai-Lak Si-Ram Intra, Bang Sue-Nonthaburi, Ratchada (Lat Phrao-Makkasan), On Nut-Bearing, Bang Na-Suvarnabhumi and Taksin-Bang Wa.
SET-listed developer Sena Development Plc said condo prices in far-off locations rose from 68,000 baht per square meter on average in 2009 to 100,000 baht this year - an increase of 48% in four years.
Sales of condominiums grew by a staggering 151.8 percent year-on-year during the first quarter of 2013. Suburban areas contributed heavily to the recent growth of Bangkok's condominium market, accounting for 70% of new launches or 22,465 units. The Real Estate Information Center (REIC) predicted a total of 70,000-75,000 new condominium units would be added to the market in 2013, a record for the property industry.
The projection for new condominiums this year was higher than in the 1997 financial crisis, since condominiums are gradually replacing single housing units in some locations.
The center noted however that the condo supply will slow down next year as developers reduce projects. A number of government agencies have earlier warned that there is a risk of oversupply, as more projects are launched throughout the year.
Negative factors contributing to the decrease in condo projects include the labor shortage and the excessive amount of new condos being built this year. Condo supply has already reached a surplus in some areas with slowing sales amid high competition.
-- NNT 2013-10-23
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