Bangkok 10 May-Kiatnakin Phatra Bank by Business Credit Division Analysis of the real estate market Bangkok and its vicinity year 66Sales slowdown, down 3-4% due to rising interest rates, tighter LTV On the other hand, outstanding units may be the highest in the past 5 years.

Kiatnakin Phatra Bank by the business credit department specifying the year 2022 in the Bangkok-perimeter area There is a 19.5% increase in the number of ownership transfers of first-hand and second-hand houses from 2021 due to the improving economic situation. Low interest rates and easing of LTV measures as well as various real estate stimulus measures. by a group that has clearly grown in the past year The price range of condominiums is 1-2 million baht, which comes from the launch of new projects for new customers in the price range of not more than 2 million baht in the past 2 years, as well as the release of finished condominium stocks that have stalled sales. During the COVID-19 situation As for the horizontal group that has expanded well is Residential groups 5-10 million, 10-20 million and more than 20 million baht.

However, in 2023, real estate in the Bangkok area and its vicinity may not be able to expand continuously from 2022, both due to the high uncertainty of the economy. Interest rate hikes and tighter LTV measures which is against the opening of new projects It is expected that the number of new units launched in 2023 will continue to be strong at a level close to the year 2022 at about 108,600 units, of which about 51% are condominiums, which will still be concentrated in the price level of condominiums under 2 million baht and group 2-3 million baht

As for the low-rise, townhouses are expected to be the group with the most number of new units entering the market, more than 28,000 units, with the main group being the 2-3 million baht group and the 3-4 million baht group. The main group is still 5-7 million baht and 7-10 million baht, with price groups that may be introduced into an increased proportion of houses with a price range of 15-25 million baht and a price range of 25-50 million baht. baht due to the good response from the sales of houses at this price level in 2022, but houses at this price level have a market share of not more than 5% of the total number of units sold.

Business Credit Division Kiatnakin Phatra Bank Estimated that from the negative factors that pull purchasing power in some groups, the overall demand in 2023 should slow down compared to 2022. In 2023, sales are expected to decrease by about 3-4% per unit. Accumulated stocks are likely to become saturated in some areas. There is a chance that the number of accumulated units sold will be at the highest level in the past 5 years (over 230,000 units). The condominium market is still a group that needs to be monitored, with potential oversupply in some locations. Because many projects focus on developing cheap condominiums, many of them compete in the market. As for the condominium market for investment in the inner Bangkok area for foreign customers (5-10 million baht) and condominiums along the Purple Line electric train. Still focusing on the release of existing inventories.

In 2023, there are still opportunities to expand in some product groups in certain locations, including

horizontal

– Bangna: still expanding well in the group of 2-3 million baht, but products are starting to be less being replaced by the price level of 3-5 million baht (townhouses and twin houses)

– Rama 2, Bang Khae: growing in the price group of 5 million baht or more

– Bang Bua Thong: Houses priced at 3-5 million baht are not available in the market. being replaced by twin houses at the same price range

– Rangsit: good growth from townhouses of 2-3 million baht, but competition is high There are still many products in the market.

– On Nut, Srinakarin, Bang Na and Ratchaphruek: Houses priced at 10-15 million baht have seen an increase in sales in the area.

– Bangna, Krungthep Kreetha, New Cut: Single houses with a price range of 10-20 million baht and more than 20 million baht are still attractive for the market. but may not be as good as 2022 due to export problems and LTV measures

high

– Bangna, Srinakarin and educational institutions: condominiums 1-2 million baht can still grow.

– Ladprao, Bangkapi, Srinakarin: Condominiums priced at 2-3 million baht. The market is getting better with the opening of the Yellow Line.

Due to the slowdown in the market and the possibility of over-supply in some areas, the Business Credit Division Kiatnakin Phatra Bank estimates that in 2023, developers should develop projects by carefully selecting customer groups and locations. Especially the condominium group in the area that has a lot of newly opened condominium projects in the price range of 1-2 million baht, such as Bangna, Rangsit, Petchkasem and Ramintra zones, as this may result in an excessive number of condominium units in these areas. In addition, there are also inner Sukhumvit zones where the condo market situation has not yet recovered, including Bang Sue, Tao Poon and Rattanathibet. focusing on discharging existing outstanding products and few new projects launched

As for locations and customer groups that can continue to expand well. is the purchasing power of 3-5 million baht, 5-7 million baht, and 10-15 million baht, especially in the low-rise market in the areas of Bangna, Rama 2-Bang Khae, Bang Bua Thong and Ratchaphruek. These are semi-detached houses with a price range of 5-10 million baht and single detached houses at 10-15 million baht, which have expanded well in the past. For high-end housing groups priced at 20-50 million baht in the Bangna and New Krungthep Kreetha areas, it is still an interesting option, but the number of house stocks and the size of the project must be controlled to suit the size of the target market.-Thai News Agency

Source: Thai News Agency