Condo prices leap 48% since 2009
Housing supply nears surplus in some areas
Prices of condo units in Greater Bangkok have skyrocketed by 48% on average over the past four years, while those of townhouses and single houses rose by 36% and 25% respectively, according to a survey by SET-listed developer Sena Development Plc.
Six locations where the company found continuing increases in condo prices were Kae Rai-Laksi-Ram Intra, Bang Sue-Nonthaburi, Ratchada (Lat Phrao-Makkasan), On Nut-Bearing, Bang Na-Suvarnabhumi and Taksin-Bang Wa.
Executive director Kessara Thanyalakpark said condo prices in those locations rose from 68,000 baht per square metre on average in 2009 to 100,000 baht this year _ an increase of 48% in four years.
For single houses and townhouses, outstanding locations were Khlong Wah-Thanyaburi-Lam Luk Ka, Min Buri-Nong Chok-Lat Krabang, Bang Phli-Muang Samut Prakan, Rat Burana-Bang Khunthian-Chom Thong and Bang Yai-Bang Bua Thong-Bang Kruai-Sai Noi.
The average price of single houses rose from 4.72 million baht four years ago to 5.91 million baht in 2013. Townhouse prices increased from 1.66 million baht to 2.25 million baht.
“Despite many ups and downs and negative factors hitting the market, housing prices have never gone down and have continued rising, depending on the type and location,” Ms Kessara said yesterday. “Houses can be used as an investment asset.”
She suggested investors consider a unit that can be bought at a lower price but sold at a higher price, a unit that can be rented out at a good rate or a unit with high liquidity.
“If using a mortgage loan, investors should select lower interest rates or choose a long-term fixed rate when interest rates are volatile,” Ms Kessara said.
Samma Kitsin, director-general of the Real Estate Information Center, said newly launched condo supply will slow down next year as developers reduce projects.
“There are many negative factors lying ahead including the labour shortage and the large number of new condos launched this year supplying as many as 70,000 to 75,000 units,” he said.
In some locations, condo supply is reaching a surplus with slowing sales amid high competition.
Meanwhile, land costs are so high that affordable condos are not feasible to develop.
• Published in Bangkok Post: 16 Oct 2013 at 00.00
• Newspaper section: Business