Bangkok--26 Apr--Oasis Media
Century 21 is confident condominium purchasing power keeps going after the economic recovery. Singapore, Hong Kong and Thailand are getting a positive impact with a projection of increases in prices in line with stronger demand.
Century 21 (Thailand) is confident that condominium market remains prospective after purchasing power continues strong while property prices in Singapore and Hong Kong soar after investors seek
for higher returns than interest rates. The company discloses that condominium prices of between Baht 60,000-80,000 per square meter is the most popular in Thailand and is confident that the prices will definitely increase in the future. It also notes locations related to tourism business including Pattaya, Hua Hin , Phuket and Chieng Mai remain attractive. The company plans to set up a new franchise to
tap foreign customers and suggests new developers to adjust strategies and builds prominent points to prepare for a high competition with large developers.
Mr. Kitisak Jampathipphong, CEO of Century 21 Realty Affiliates (Thailand) Co., Ltd, or Century 21 (Thailand) discloses that since 2009 the overall condominium market in Thailand remains having a good growth , especially from domestic purchasing power which will continue in 2010. Meanwhile, foreign purchasers in 2008 got an impact from the political situations but sign of foreign consumer starts improving in the first quarter o f 2010 and expects foreign purchasing power will pick up. Likewise, in the neighboring markets like Singapore and Hong Kong, property prices have soared very fast since late 2008.
In the condominium market in the first quarter and its trend in 2010 , unit prices of between Baht 60,000-80,000 per square meter will be the largest growth market. This condominium segment will have locations around 10-15 kilometers away from the Central Business District (CBD). At the same time, high-end condominium remains stable as land prices have soared very highly , pushing unit prices rise while demand is quite rare.
“In the first quarter of 2010, the market is quite good with a consecutive growth from last year. The market is more active and land plot acquisition keeps going due to strong investment from large developers and new entrants. Similarly, in our neighbors like Singapore and Hong Kong property market is growing very fast and prices rise very highly, partly resulted by interest rates in Singapore and Hong Kong which are so low that consumer need to seek for alternative investments and property is a choice. However, Hong Kong property market is different from Thai market as investors are new rich from China which pushes condominium higher and more expensive. Unit prices starting from
HK$ 20 million is the most popular now,” Mr. Kitisak says.
Mr. Kitisak continues that locations clinging to the mass transits remain a very first choice for condominium in Bangkok while condominium prices , especially Grade A condominium, will have higher prices. Presently, selling prices are around Baht 100,000-120,000 per square meter on average. This kind of project will decrease in the future due to rare prime plots and rises in land prices. As a result, consumers tend to eye on smaller-sized condominium unit or around one bedroom and most of them are Thai consumers and speculators. Meanwhile, two-to three-bedroom types are attracted by expatriates and long-term investors that expect rental return.
Besides CBD and locations clinging to the mass transits , the company estimates there are other interesting locations in 2010, especially locations in tourist destinations like Pattaya, Hua Hin, Phuket and Chieng Mai which have a strong growth direction. Currently, the company opens a new franchise in the destinations. Most of the target demand is foreigner that invests in Thailand.
For the direction and competition of condominium market in the future, main factors will be locations and confidence in brand awarenesss among consumer. Large developers, especially the listed companies, are more advantageous than others as consumer is confident in their potential. If locations are nearby , large developers will have more advantages. Meanwhile, smaller-sized developers and new entrants need to have a distinctive location and also create new things to the project so that consumer can recognize. These are main factors to help them compete with large developers or the existing developers in the market.
About Century 21 Realty Affiliates (Thailand) Limited
Century 21 (Thailand) is one-stop real estate service provider. With extensive experiences of more than 20 years, it has business network covering more than 67 countries in 6 continents which enhances business expansion potential to the regional level with the largest networking communication coverage. Currently, Century 21 manages The Coast Bangkok, THRU Thonglor, Parc Exo, The COLORY Vivid, VOQUE Residential and SEA ME Hua Hin. More information about Century 21, please visit www.century21.co.th
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