Bangkok--28 Aug--Raimon Land
Leading Thailand luxury property developer Raimon Land’s latest issue of its exclusive research journal, Condominium Focus, has revealed the Bangkok and Pattaya real estate markets are showing positive signs despite the global economic downturn.
While overall sales have undoubtedly been impacted and the gap between completed stock and actual transfers has widened, there has been no decline in property prices or off-plan take-up rates.
Moreover, in the second quarter of this year condominium presales more than doubled those in the fourth quarter of 2008, the stock property index this month has recovered to its peak in August last year and a 10-15% fall in construction prices is set to fuel an upswing of new launches later this year.
The respected research document further revealed the market’s resilience and growing maturity. While only 447 luxury condominiums were launched in Bangkok during the first six months of 2009, off-plan take up rates were still high at 73% and average per metre prices grew at a stable rate of 4% to reach THB125,910 per square metre (psm).
Raimon Land Chief Executive Officer, Hubert Viriot, said 2009 had been a challenging year so far for Bangkok property developers, but there were clear signs that a modest recovery had begun which was expected to continue as the year progressed with new launches expected.
“This issue of Condominium Focus, as we have come to expect, is once again a fully transparent and independent evaluation of the luxury condominium markets in Bangkok and Pattaya,” he said.
“We place high value on this level of research as it allows us, our customers and the industry as a whole to track trends such as pricing, developer launch activity and areas where new supply is coming up in the future.
“Its true it has been a tough start to the year, but we fully expect the market to come back even stronger due to the shakeout of unqualified buyers and the “wait-and-see” pent-up demand that has accumulated since last September.”
Condominium Focus also investigated progress in Pattaya and discovered that an 18% fall in passenger arrivals in the first quarter of 2009 compared to the same period last year has led to a softening in demand for property in a market where 50% of sales are for holiday units.
The drop in demand has led to lower prices in the resort city for the first time since 2003 to THB93,744 psm.
“Pattaya is a less resilient market than inner-city Bangkok due to its dependence on tourism and is consequentially less immune to ongoing political events and escalating fears of the H1N1 virus,” said Mr Viriot.
“However, what we can also see is strong growth among Thai buyers under 40 years of age, who are looking for a holiday home and robust investment returns. This is very encouraging and will stand Pattaya in good stead in the future.”
Note to editors: A downloadable PDF file of Condominium Focus can be downloaded at http://www.raimonland.com/en/mr_condofocus.asp
PRESS ENQUIRIES :
Pattaranit Imampai
Senior Manager, Communications
Raimon Land PLC
Tel : +66 (0) 2651-9601 to 4
Fax : +66 (0) 2651-9636
E-mail: [email protected]
Kwanrudee Maneewongwatthana
DVP Corporate Communications & Branding
Raimon Land PLC
Tel : +66 (0) 2651-9601 to 4
Fax : +66 (0) 2651-9636
E-mail : [email protected]