Bangkok--10 Sep--Francom Asia
Luxury property developer Raimon Land has released its latest research publication Condominium Focus Thailand: Update Of Inner-City Bangkok and Pattaya, revealing a resilient Thai economy registered over 10% growth in the first half of 2010, driving sales and investment returns despite earlier political troubles.
The ninth edition of the publication, available free as a download at www.raimonland.com further provides evidence drawn from historical data since 2006 until the end of June this year of the benefits the condominium market has enjoyed with presale figures from key listed developers already totaling THB31 billion in the first half 2010.
A total of 4,098 new condominium units were completed in Bangkok’s inner-city areas in the first half of 2010, increasing the total supply by 7%, with another 9,866 units still in the pipeline, of which 75% have been taken up so far.
The average price of condominiums sold in Bangkok’s inner-city during the first half of 2010 was THB108,125/sq.m — while top-end launches in prime locations are currently selling at prices of THB180,000 and upwards, such as the St. Regis Residences, Ritz Carlton Residences and the upcoming 185 Rajadamri condominium development.
Condominium prices in second and third-tier locations have also risen significantly, closing the gap on average inner-city prices. The number of re-sales in the secondhand market has increased too, likewise narrowing the gap from off-plan prices.
Raimon Land’s Condominium Focus Thailand further explains how the strengthening of Thai baht and the concurrent weakening of European currencies have combined to change buyer demographics.
Raimon Land Deputy Vice President for Research and Development, Simon Dervill้, said the condominium market in the first quarter of the year, while historically high, was supported by strong economic fundamentals. But it was the second quarter that performed beyond expectations despite a month of protests.
“One of the key findings of our research is that demand from Thai buyers is stronger than ever with many developers adjusting their strategies to tap this market. At Raimon Land, foreign demand switched to Asian nationals while European demand continued to struggle with their own economies and weak currencies,” said Mr Dervill้.
Condominium Focus Thailand reports the market for condominiums in Pattaya, which had always relied upon international tourism arrivals (up 13.7% in H1/10), is now catering far more to domestic residents on weekend trips from Bangkok.
The first half of 2010 also saw a shift in focus towards Pattaya’s urban areas: 89% of new condominium launches were budget units priced THB1 million to THB5 million located inland, close to the city centre.
“We expect future launches to tap into a more affordable market, targeting weekend visitors from Bangkok rather than holiday makers from Europe,” added Mr Dervill้.
“When looking at the nationalities of buyers in Pattaya in particular - 67.4% are now Thais, 9% are Russians while two large prospective markets are emerging: India and China.”
New launches in seaside locations reduced to just 158 units in the first half of the year, with another 3,659 units are still on hold. Just 379 units expected to be completed in H2/10 — while owners who decided to rent out their units are achieving rental yields of 5-7%.
Condominium Focus Thailand is a research publication aimed at providing investors and industry observers with an accurate insight into supply, completions, off-plan sales and transfers.
The report covers condominium projects launched since 2006 in Bangkok and Pattaya that have a majority of units priced at over THB2 million. Raimon Land collects this data by surveying the projects listed in the publication, on a monthly basis through a variety of sources comprised of site visits, interviews, press articles, investor research on listed companies and other research agency reports.
The data catchment area of inner-city Bangkok includes Sukhumvit, Silom/Sathorn, Central Lumpini, and Riverside locations, whereas in Pattaya, it includes the areas from Naklua in the north of Pattaya down to Na Jomtien in the south of Pattaya.
PRESS ENQUIRIES :
Kharittha Khumpong
Raimon Land Public Relations
C/O Francom Asia
Tel: 02 233 4338 ext. 22
Fax: 02 236 8030
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]