As most developers shifted to condominiums and projects in resort destinations, the number of new single-house and townhouse launches in Greater Bangkok during the first half was only about one-third of condominiums. condominiums in the area.
The small number of new single houses and townhouses, collectively defined as low-rise units, was mainly due to slow recovery in the segment after the floods last year, said Samma Kitsin, director-general of Real Estate Information Center (REIC).
“The condo numbers were also inflated by units that had been scheduled to launch in last year’s final four months but were delayed,” he said.
“Some were from low-rise developers that shifted to the condominium segment such as NC Housing and more recently Sammakorn, after the low-rise segment failed to pick up after the massive flooding.”
REIC data peg the number of condominium units newly launched in Greater Bangkok in the first half of this year at 36,400 and that of low-rise units at only about 12,500.
Listed developers launched 75% of the condo units but only 60% of the low-rise numbers, indicating that large developers have shifted more towards condos, said Mr Samma.
He expects the number of new condo and low-rise units in the second half will total 20,000 each.
Most of the low-rise units will enter the market in the fourth quarter, after the rainy season ends and just before the Bank of Thailand’s loan-to-value ratio for low-rises, delayed a year until next Jan 1, takes effect.
Buyers of low-rise units priced at less than 10 million baht applying for a mortgage can receive a maximum of 95% of the home’s value.
Earlier, there were no credit limitations for this price range.
Buyers of units priced at more than 10 million baht must make a down payment of 30%.
“If there are no more floods this year, then the low-rise market may recover. But if flooding happens again, the segment will become mired in a lengthy sluggish period,” said Mr Samma.