The supplies of housing markets in the Bangkok Metropolitan Region would be declined in 2019 for over 20% due to the weakening economy of Thailand
According to Dr.Sopon Pornchokchai, President, the Agency for Real Estate Affairs (www.area.co.th), during the first five months of 2019 in the Bangkok Metropolitan Region, 37,608 units were newly launched at a total value of Baht 147.209 billion (USD 4.7 billion). The average price is Baht 3.925 million or USD 125,400. 66% of the supplies were condominiums (owner-occupied apartments); whereas, townhouses (barrack-type rowhouses) and detached houses were 18.5% and 10.2% respectively. However, in terms of value, condominiums were accounted for 56.8% followed by detached houses (22.6%) and townhouses (14.2%).
The largest proportion of the newly launched units: Condominium priced below Baht 1 million (average Baht 963,000) were launched for 7,816 units (21%) at Baht 7.524 billion (5%). The second largest proportion: Condominium priced at Baht 1-2 million (average 1.752 million) were launched for 5,740 units (15%) at Baht 10.055 billion (7%). The third largest proportion: Condominium priced at Baht 2-3 million (average 2.535 million) were launched for 3,700 units (10%) at Baht 9.38 billion (6%)
For townhouses, those priced Baht 3-5 million were ranked No.6 with an average price of Baht 3.63 million. The units launched were 3,104 (8%) at Baht 11.267 billion (8%). For detached house, those price Baht 5-10 million were ranked No.7 with an average price of Baht 6.743 million. The units launched were only 2,739 (7%) but the total value was Baht 18.469 billion (13%).
On the contrary, products which were not popular, namely, fewer units launched and little value involved included shophouses priced Baht 3-5 million and Baht 10-20 million, semi-detached priced Baht 5-10 million and Baht 20 million and over and townhouses priced Baht 10-20 million.
It was estimated that for the whole year of 2019, there should have been some 98,251 units newly launched at the value of Baht 402.808 billion or USD 12,869 million. This meant that the number of units would drop for 21% compared to the units launched last year. However, the shrinkage of the total development value would be 29% in 2019. This implied that the launching of housing markets in Bangkok would be very significant indeed.
The decline of the markets was due to the fact that local purchasing power would be dropped due to slower exports, lower affordability as well as the slow down of world economy as a result of world’s recession.