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Tourism insights condo demand

2/24/2012

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According to Knight Frank Thailand’s associate director of research and valuation, Risinee Sarikaputra, that an influx of Bangkokians have temporarily moved to resort cities such as Rayong, Hua Hin, and Pattaya as a result of the floods that penetrated the city and its surroundings suburbs in the third and fourth quarters of 2011. Thus, the high demand for condos in these resort locations are reflected in the lacking demand in Bangkok.

As a result, developers are seeking different investment paths and have diversified their strategic plans of building by building out of Bangkok in order to avoid the already over supplied market. Thus, the demand for condos in the capital city has become so slow.

While research clearly indicates a 65 per cent decrease in 2010 in that the total take-up of units was on 20,560. This stagnation can be blamed on an excess supply in condos on the market, which can be depicted from the carry over from 2010 to the first half of 2011.

The Knight Frank research shows that the majority of condo supply is in the peripheral Bangkok area that amounts for 65 per cent of the new market in 2011.


by  Property Report


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