Recovery to favour condos

Residential project launches for the rest of the quarter are likely to remain subdued because of current unfavourable sentiment and logistics, says real estate firm Colliers International Thailand.

Unlike last year, when buyers jumped straight into the market after the Bangkok political riots ended, many will be cautious about making a big decision to purchase property until ongoing events have ended and flood impacts are analysed, says the company’s managing director Patima Jeerapaet.

“The full story will need to be known before buyers come rushing in again, and developers will also need to re-evaluate projects,” he said.The decision whether to purchase landed property or a high-rise condominium will probably favour the latter, but at any rate people will seek areas less prone to floods.

Despite long delays in buyers returning to the market, pent-up demand should increase and eventually lead to a significant number of launches.

Tony Picon, an associate director at Colliers, predicts that condominiums will be more popular than ever after the floods.

“You could find families encouraging one of their number to purchase a condominium unit and even help in financing, as it would then function as a back-up residence,” Mr Picon said.

At the high-income end, the same reasoning could add to the trend of second homes in resorts such as Hua Hin or Pattaya.

While high-rises will prove more popular, landed property will remain a strong presence in the city. Innovative designs may be employed to allow water to run off quickly.

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