Rapid increase in supply
Q4 2009 witnessed a rapid increase in condominium units launched over previous quarters with approximately 13,700 units in total, over 9,000 of these in the suburban area. This represents a 5.8% increase in total supply q/q and a 10.7% increase y/y.
Rising in the east
The eastern fringe and the outer city east area recorded the highest price increases in Q4 y/y with 35% and 19.6% rises respectively. The preeminence of the Sukhumvit corridor as the most sought after area to live shows no sign of abating.
Mass transit on the march
Continued expansion of the new BTS lines dominates condominium growth in urban Bangkok. Q4 2009 witnessed continued development along the new BTS Silom line extension in Thonburi. The number of units completed along the extension will have risen over sevenfold from 2006 to the end of 2010.
New niche market
The new decade will herald in a significant increase of the relatively prosperous 50 to 60 age group. Developers should consider this an attractive but challenging niche market. In the next ten years there will be an additional 1.58 million people in this age category.
Cheap credit fueling growth
Interest rates remain low but rises loom in 2010. Continued low interest rates have energized the market but most forecasters predict limited increases in H2 2010.
The rebirth of suspended projects begins Nearly 1,000 units are expected to be completed by the end of 2010 from previously suspended projects. Two more projects are slated for 2011.
The urbanization of Bangkok
Mass transit development will expand the urban reach of the city with more condominium units to be supplied in the urban area than the suburbs for the next few years.