The Knowledge Report
Total Page:16
File Type:pdf, Size:1020Kb
COLLIERS INTERNATIONAL | THAILAND The Knowledge Report BANGKOK CONDOMINIUM MARKET | 2ND QUARTER | 2010 Executive Summary New launches in Q2 2010 fell dramatically compared to the previous two quarters as prolonged demonstrations culminating in violent rioting led to developers delaying launch dates. The reduction in tensions means that the market is set to resume its stellar growth for the second MARKET INDICATORS half of 2010. Q1 - Q2 2010 2010 is likely to see the largest completion of new supply since 1997 with an estimated increase of just over 30,230 units compared with approximately 27,430 units in 2009. Less than 3,200 units were supplied in Q2 2010. SUPPLY Developers are shifting focus towards urban Bangkok as more units will be supplied in the urban area LAUNCHES compared to suburban Bangkok. PRICES New condominium launches tumble due to unrest TAKE-UP NEWLY LAUNCHED CONDOMINIUM UNITS DURING THE YEAR 2009 - Q2 2010 BY QUArtER. Source : Colliers International Thailand Research Newly launched units in the second quarter of 2010 decreased from the previous quarter by approximately 67% due to the demonstrations and violence in April and May, which led to numer- ous developers postponing their projects. Nearly 4,600 units were launched in Q2 2010. www.colliers.co.th The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market ZONING 2 COLLIERS INTERNATIONAL The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market • CITY AREA The area covers four adjacent but competing sub-mar Silom / Sathorn section; and the Riverside section fronting the kets: the Sukhumvit section comprising Sukhumvit Chaophraya River along Charoenkrung Road and Charoenna- Road between Soi 1 and Soi 55 to the north and Soi 2 korn Road, where several five-star hotels are located. The City and Soi 38 to the south; the Central Lumpini section Area is convenient for businessmen, expatriates and tourists, be- including Phloen Chit Road, Rama I Road, Soi cause of its proximity to many office buildings, retailing and local Langsuan, Soi Sarasin, Chitlom Road Ratchadamri attractions. Parts of this area were directly affected by the April Road, Witthayu Road and Rachaprasong Road; the and May demonstrations and violence. • CITY FRINGE AREA This area covers three parts of Bangkok: o Northern Fringe: This section covers the o Eastern Fringe: This section covers the BTS route starting from BTS route starting from Ratchathewi Station Thong Lor Station to On Nut Station to the east, Rama IV Road to Mo Chit Station to the north and the MRT and Petchaburi Road, route starting from Petchaburi station to Bangsue station to the north. This area covers locations with their own local infrastructure and convenient transportation but require commuting to have o Southern Fringe: This section covers access to the central business and entertainment areas. Narathiwad Ratchanakarin Road, Chan Road, Sathupradit Road, Charoenkrung Road and Rama III Road along the Chaophraya River. • OUTER CITY AREA The area covers two parts of Bangkok: o Outer City (East): This section starts from Station to Bang Wa station which includes the area from Krung the extension of the BTS route at On Nut Thonburi Road to Ratchaphruek Road near Petchakasem inter- Station to the Bangkok boundary to the east. section. o Outer City (West): This section starts from the extension of the BTS route at Taksin • SUBURBAN BANGKOK These are the environs outside the areas already this area. Suburban Bangkok represents the biggest area and for mentioned. Expansion of the mass transit system is the the purposes of this report includes Bangkok city old town (Koh main determinant for increasing future supply in a Rattanakosin area and boundary area). This location has com- particular area. The expansion from On - Nut to Samut prehensive town planning controls restricting building height, Prakarn is scheduled to be completed in 2011. The so there are no condominium projects in the area. expansion of the BTS will benefit directly the surrounding condominiums, as it will considerably reduce transportation costs and time. This will encourage the development of new condominiums in COLLIERS INTERNATIONAL 3 The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market NEWLY LAUNCHED CONDOMINIUM UNITS IN Q2 2010 BY LOCATION Source : Colliers International Thailand Research Suburban Bangkok area continued to show the highest numbers The largest project in this quarter, The Tree Kiak Kai Station with approximately 2,900 units being launched in Q2 2010. The by Pruksa Real Estate Plc. was launched with over 1,000 units slowdown in general activity by consumers during the protests in the suburban Bangkok area. The listed companies continued was the most important factor affecting the market as more de- to lead the market with approximately 3,000 units or 68% of the velopers postponed projects in all locations. More than 44% total market. of total projects were launched in June and some projects were delayed to the second half of 2010. HISTORICAL SUPPLY Source : Department of Land, Colliers International Thailand Research Remark : The number of units does not include projects from the National Housing Authority Only approximately 3,200 new condominium units were However total condominium units scheduled to be completed in completed and registered at the Department of Land in Q2 the rest of 2010 is estimated to be nearly 22,500 units. 2010 despite the continuation of some of the incentives. This represented a fall of about 54% from the previous quarter. 4 COLLIERS INTERNATIONAL The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market TOTAL SUPPLY BY LOCATION TO Q2 2010 Source : Department of Land, Colliers International Thailand Research More than 68% of total condominium units are located in the urban area, the Northern Fringe contains the most units due to suburban Bangkok area or more than 186,000 units. Within the its proximity to the centre and mass transit connections. CITY AREA Source : Colliers International Thailand Research Only 333 units were added in Q2 2010, so total supply in this scheduled to be completed in the second half of this year. area was approximately 21,600 units and roughly 1,700 units are COLLIERS INTERNATIONAL 5 The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market NOrthERN FRINGE AREA Source : Colliers International Thailand Research About 1,600 units were supplied in Q2 2010 but almost 7,000 Phahonyothin, Ratchdapisek, Ari and Sutthisan Road. The units are under construction and scheduled to be completed in Northern Fringe contains a significant number of BTS and MRT the second half of the year, and this area still remains the main stations, the main public transportation systems in Bangkok. target for condominium projects in the near future, especially FUTURE SUPPLY CUMULATIVE FUTURE SUPPLY SCHEDULED TO BE COMPLETED DURING THE YEAR 2010 – 2013 BY LOCATION IN URBAN BANGKOK. (AS OF Q2 2010) Source : Colliers International Thailand Research Remark : Supply does not included unit in Suburban Bangkok 6 COLLIERS INTERNATIONAL The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market The Northern Fringe area continues to be the main player in The sale of a prime land plot in Wireless Road for 1.5 million urban Bangkok with approximately 7,000 scheduled to be com- baht per square wah (375,000 per square metre) means that a pleted in the second half of 2010 or an increase of around 187% condominium unit in this location could be priced up to 300,000 from the first six months of 2010. The City area still remains baht per square metre. a focal point for developers for high – end category projects. FUTURE SUPPLY – THE URBANIZATION OF BANGKOK THE PROPOrtION OF EXISTING CONDOMINIUM SUPPLY IN BANGKOK BY LOCATION, AS OF H1 2010 Source : Colliers International Thailand Research THE PROPOrtION OF FUTURE CONDOMINIUM SUPPLY IN BANGKOK BY LOCATION, BY 2013 Source : Colliers International Thailand Research Suburban Bangkok area still contains the largest share of of urban living, especially in the form of better transportation. condominium supply catering predominantly for the mid to The general reduction in unit size means that more residents are low end segment. However, developers are shifting focus on able to afford this urban lifestyle. This trend will likely effect the condominiums within the urban Bangkok area as demonstrated direction of office and retail development in the process. in the charts above. More people are attracted to the convenience COLLIERS INTERNATIONAL 7 The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market TAKE UP SALES PROPOrtION OF NEWLY LAUNCHED UNITS IN Q2 2010 BY LOCATION Source : Colliers International Thailand Research The take up rate for condominium projects in Bangkok for Q2 lines means that they are very popular with buyers. The prime was approximately 77 %. The occupancy rate in the Northern location of the City area accounts for the high take up there and Fringe area is the highest followed by the City area and subur- the affordability of suburban Bangkok to mostly first time buyers ban Bangkok area. Various factors account for this, the fact that is the main reason behind its popularity. many of the Northern Fringe launches were close to mass transit 8 COLLIERS INTERNATIONAL The Knowledge Report | 2nd Quarter | 2010 | Bangkok Condominium Market LAUNCHES WITH HIGH TAKE UP RATES IN Q2 2010 In suburban Bangkok area LPN Development still continues to The Tree Kiak Kai Station by Pruksa had its 1,047 units sold be the main player in the market, Lumpini Condotown Ranin- out in one day with just the top floor kept until construction is dra – Nawamin building D sold its units out in a matter of hours. completed. The Tree is close to the future BTS line (Blue Line) This building contained only studio units at just 22 sq m. with a and new parliament as well as being located near the Chao Phra selling price starting at 678,000 baht per unit.