Unsold properties saturate Thailand real estate market, may breach 1 trillion baht
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Loading... - Sofia Chew
- 06 Apr 2022
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Developers of residential properties in Thailand should exercise caution when announcing new properties this year, as their collective plans represent the largest amount of new properties in more than a decade, warns Asia Plus Securities. Meanwhile, unsold properties present a high level of risk and might exceed a total value of 1 trillion baht.
The word of caution comes as developers are eager to finish projects that have been on hold since the pandemic, leading to a bottleneck in the market, followed by a subsequent outpouring of “new” projects this year.
One such project is SC Asset’s The Villa — 28 Chidlom on Chidlom Road in central Bangkok. According to promotional material. Construction began on the two-building condominium project in February 2016, and was expected to be completed by May 2020. The two-building project comprises a total of 427 residential units spread across 68 floors.
This year, 18 major developers are expected to build more than 300 projects worth a total of about 448 billion baht. By the end of 2021, 14 listed firms reportedly had unsold units worth more than 557 billion baht.
Added together, the expected releases and the existing projects still under development are set to flood the market this year with a collective property value exceeding 1 trillion baht for the first time ever.
According to Therdsak Thaveetheerathum, the deputy director of the research division of Asia Plus Securities…
“Supply will be too great, even though purchasing power still remains in the market. Developers should be wary as demand will be not as high as in 2018.”
The overall presales of Thailand developers totaled 354 billion baht in 2018, the highest amount ever seen. Last year, annual presales had dropped to approximately 250 billion baht. Read More…
