The second quarter of this 12 months witnessed a big stoop in gross sales for newly launched condominiums in Bangkok. Hidden , gripped by mortgage rejection fears, exhibited a powerful desire for ready-to-transfer units.
Tritecha Tangmatitham, Managing Director at Supalai, highlighted that a staggering 70% of condo sales within the present yr have been for completed items, underscoring a marked shift in consumer behaviour precipitated by the pandemic.
Tritecha expounded on this shift, attributing it to apprehensions regarding mortgage mortgage approvals for presale condos. The looming spectre of loan rejection weighed closely on potential buyers, thus driving them towards units ready for switch.
Remarkably, before the pandemic, gross sales of ready-to-transfer models accounted for a modest 20-30% of total apartment sales. However, final yr witnessed an astonishing surge, with these units commanding a whopping 80% of the market.
According to property consultancy firm Knight Frank Thailand, the common sales fee for newly launched condos in Bangkok dwindled from a healthy 48% per quarter during Q1 2018 – Q4 2019 to a meagre 32% from Q1 2020 to Q2 2023.
To put this into perspective, between Q1 2018 and Q4 2019, approximately 15,900 newly launched condo items garnered demand for round 7,seven-hundred units each quarter. In stark distinction, the period from Q1 2020 to Q2 2023 witnessed figures of seven,970 units and a pair of,500 models, respectively.
Despite Q2 2023 boasting the highest number of new apartment launches (11,930 units) since Q3 2022, representing a 40% quarter-on-quarter and a 21% year-on-year improve, the gross sales fee plummeted to 27% from the 42% recorded in Q1, as reported by Bangkok Post.
Nattha Kahapana, Managing Director at Knight Frank Thailand, observed a slower demand recovery, notably within the lower-priced segment, regardless of some resurgence in buying energy.
The surplus of unsold items in affordable tasks could be attributed to middle-income patrons going through heightened risks of loan rejection and lowered affordability as a end result of market worth fluctuations.
In response, these patrons are turning their attention to the second-hand condo market, the place models boast beneficial locations, proximity to transportation hubs, and competitive pricing.
This growing trend within the second-hand market is additional bolstered by an increase in financial institution repossessions ensuing from mortgage defaults, which at the moment are categorised as non-performing loans. This pattern is predicted to endure, fortifying the second-hand property sector.
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