Property sector set for strong growth
Lack of prime sites to spur residential market
The retail, office and central business district (CBD) condominium sector was strong in the fourth quarter last year and will continue to be so in 2014 due to limited supply, according to property consultant DTZ Debenham Tie Leung (Thailand) Co.
Over 3,000 new condo units were launched in the fourth quarter, bringing the overall number of new launches to slightly over 10,000 units in 2013 compared to 7,300 units in 2012, a record year for the CBD.
However, a lack of prime development sites will continue to drive demand for top-quality residential products in desirable locations.
The Sukhumvit zone recorded the largest number of new launches with 1,577 units, representing more than half the total in the fourth quarter.
While demand for small and compact condos has been consistently positive over the last two years due to affordable pricing and payment schemes, there is also a burgeoning appetite for larger and more spacious units. Continue reading Property sector set for strong growth
Home building facing triple whammy in 2014
The labour shortage, economic slowdown and political turmoil will continue to weaken the overall homebuilding market this year, with expected expansion of only 7% to 11.5 billion baht, below usual growth of 10%, says the Home Builder Association (HBA).
President Wisit Monaiyapong said a labour shortage has been the major problem in the construction sector since wages rose in April 2012. The problem continued in 2013 and remains potent this year.
The economic slowdown since mid-2013 has also weakened consumers’ confidence and purchasing power, but worst of all was the political crisis that started last November in the high season for homebuilding and housing sales. Continue reading Homebuilding facing triple whammy in 2014
Condo prices up as train lines draw buyers to city outskirts
The condo price index for Bangkok, Nonthaburi and Samut Prakan in the second half of 2013 rose by 5.6% year-on-year, with units along the skytrain extension line in Bang Na and the future MRT Purple Line posting the highest increases.
Bangkok condo prices rose by 5.5%, while those in Nonthaburi and Samut Prakan were up by 8%, said Samma Kitsin, director-general of the Real Estate Information Center (REIC).
The highest increase was found in the price range of 50,000-80,000 baht a square metre, up by 8.7%. Prices for the segment rose by 8.6% in Bangkok and 9% in Nonthaburi and Samut Prakan. Continue reading Condo prices up as train lines draw buyers to city outskirts
City’s condominium sector still seeing strong growth
Prices in the central business district (CBD) areas continued to grow as major development sites became scarce, according to HipFlat, a real-estate search portal.
It said condo price rises were mainly driven by increasing land prices that pushed development costs and unit prices.
Demand also showed stable growth in downtown locations, while rental rates were strong in the CBD, especially in locations near mass transit links.
The resilience is well demonstrated by long-term market growth in Bangkok. Continue reading City’s condominium sector still seeing strong growth
Now BTS Skytrain reached very near to Metro Park
Wutthakat and Bang Wa stations have been built on a 2.2-kilometre extended section of the BTS Silom Line, that links Thon Buri in western Bangkok to the business areas of Sathon and Silom.
Now can get off at Wutthakat station and get a ride in shuttle van of metro park, which cost 20 Baht per person and it is less then a half kilometer distance.
Central Bangkok condo launches leap in Q3
Bangkok’s central business district (CBD) condo market recorded a rise in third-quarter launches with 2,440 units, compared with 1,600 in the second quarter.
Despite warnings of rising household debt in the overall economy, developers continued to show modest confidence in homebuyer appetite by launching new projects before the year-end festivities, which take place over what is usually a quieter period for housing activity, according to property consultant DTZ.
The central zone _ Chidlom, Phloenchit, Ratchadamri, Rama I, Sam Yan and Ratchathewi _ was especially active with four project launches, accounting for 71% (1,700 units) of total launches in the third quarter. Continue reading Central Bangkok condo launches leap in Q3
BTS Group boosting dividend to B6bn and beyond
Back at home, Bangkok Mass Transit System Plc, the BTS subsidiary and skytrain operator, has received five Chinese-made four-car trains to be used on the 5.3-kilometre extension of the Silom Line from Wong Wian Yai to Bang Wa.
Made by Changchun Railway Vehicles Co, the 20 carriages worth 1.2 billion baht have arrived at Laem Chabang port and should begin trial runs on Dec 5, said chief operating officer Surapong Laoha-Unya.
Continue reading BTS Group boosting dividend to B6bn and beyond
Condo market stalls in Bangkok suburbs in Q3
Bangkok’s condominium market showed signs of slowing in the suburbs in the third quarter, according to a report by Colliers International Thailand.
The number of new launches decreased by about 10.5% from the previous quarter.
The 11,240 units launched were mostly in urban areas and focused on the middle-income market.
The number of newly launched units in suburban Bangkok in the second quarter declined from the first quarter and continued to decrease in the third.
Surachet Kongcheep, associate director of Colliers’ research department, said the decrease was because developers were concerned about household debt in the middle-to-low-income market and focused more on the higher-income urban market and along the extensions of mass transit systems.
Most new condo projects in the third quarter (8,950 units) were located in the urban area, while there were only 2,290 units in the suburban area.
The Outer City West Area saw the highest number of new launches at about 3,000 units. Most were located near the new Wutthakat skytrain station, which is due to open at the end of this year. Continue reading Condo market stalls in Bangkok suburbs in Q3