Welcome to the land world
Bangkok Apartment Market's Recovery in Q2

As the capital of Thailand, Bangkok is still favored by home buyers and real estate investors. Even during COVID-19 pandemic, they failed to stop them from seeking high-quality real estate investment targets in their footsteps and decisions. Patarachai, head of research and public relations at Colliers International in Thailand, revealed that the trend shown by the transaction volume is almost a bit like a bottom hunt in the housing market. At the end of the second quarter of this year, the transaction rate of Bangkok apartment real estate was as high as 61%,  the highest level in the past 10 quarters.

He believes that this momentum will continue in the second half of this year. With the newly opened 9,000 units entering the market, there will be 15,079 new apartments in Bangkok throughout the year, a decrease of 32.3% from last year. In view of the current situation of the COVID-19 in Thailand, he hopes that the government can speed up the procurement and distribution of vaccines to advance the national vaccination plan as planned, and implement the timetable plan for opening up the country proposed by Prime Minister Prayuth.

Thai real estate developers are also promoting the opening sales of new real estate projects as planned. As the vaccination work progresses, it is believed that most real estate developers will launch multiple types of real estate projects for centralized sale in the fourth quarter. In addition, the 30-day period of the government's closure of the city will still have a certain impact on the development progress of real estate projects, but as the government gradually lifts the restrictions after September, the situation will gradually improve.

At the end of the second quarter of 2021, there are 4 newly opened condominium projects in Bangkok, with a total of 2,471 units, valued at 6.432 billion baht. Among them, a total of 1,236 real estate units developed by large real estate brand companies, accounting for nearly 50%, are worth 4.482 billion baht. If divided by listed and non-listed real estate companies, 585 units come from non-listed companies, accounting for 23.7%, worth 1.2 billion baht; 650 units belonging to the Ministry of Finance project, accounting for 26.3%.

So far, in the first half of 2021, there are a total of 14 newly opened apartment projects, with a total supply unit of 6,079, valued at 28.772 billion baht, a decrease of 14.2% compared with the same period last year. However, most of these newly opened properties are located in the suburbs of Bangkok. The total number of units in only 3 projects reached 1,831, accounting for 74.1%; followed by Sukhumvit-Bangla District, the total number of units in 1 project was 650, accounting for 25.9 %.

As for housing prices, the average price per square meter of these listings is mostly less than 100,000 baht. This price looks slightly lower than the price of the entire Bangkok apartment for sale market. This is mainly due to the limited ability to purchase houses in the current epidemic, and developers have the urgency of funding.

If we look at the volume and proportion of apartment real estate transactions in the entire Bangkok city in the second quarter, the 61% transaction rate is even the highest in the past 10 quarters. Among them, listed real estate companies put individual school district housing projects online for special pre-sales, and it is more real that they have sold out more than expected soon after the start of the sale. This excites developers and boosts their confidence in the market outlook. During the epidemic, online transactions and marketing have become areas where major brands of automobiles are vying to expand.