Bangkok condo prices expected to continue to fall this year
Condo prices in Bangkok are falling and are expected to continue to fall throughout the year. The real estate market isn’t anticipated to pick back up again until the Covid-19 pandemic eases.
The average prices of new condos in Bangkok are expected to fall by 5%, according to Nexus Property Marketing. The real estate marketing firm Juwai IQI Group says the average prices for new condos will decline by 3.9% while resale condos price will decline by 6.7%. Juwai IQI co-founder and chief executive Kashif Ansari says this year is an “excellent” time to invest.
“Prices have dropped, discounts are available and the market will likely take a sharp turn upwards after the pandemic is behind us.”
Nexus managing director, Nalinrat Chareonsuphong, says that with 33,000 unsold condo units being completed, adding to the unsold stock in Bangkok, the average prices of resale condo units will also decline due to the competition with newly-completed condos.
Bangkok condo prices dropped by 11% in the past year, going from an average of 141,800 baht per square metre in the fourth quarter of 2019 down to 126,909 baht per square metre in 2020, according to a report by Nexus.
Prices are expected to continue to drop, with the average price dropping to 120,564 baht per square metre this year. Prices are expected to go up to 122,975 baht per square metre in 2022.
The number of new condos in Bangkok dropped by 39% going from 43,051 units in 2019 to 20,100 units in 2020. The number is also a significant difference from the 5-year average of 51,568 units.
Many projects were impacted this year either by suspended sales activities or development plans that were delayed or changed.
“Last year condo buyers looked for ready-to-move units rather than off-plan units as prices are more attractive. This trend will continue this year.”
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SOURCE: Bangkok Post
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