The total value of new housing supply
to be added to the Bangkok property market
during the second half of the year is
expected to fall while the volume will
hold steady because of a projected pickup
in low-priced units, according to Sopon
Pornchokchai, managing director for the
Agency for Real Estate Affairs.
Mr Sopon said 182 projects with a combined
total of 26,353 units worth 80.59 billion
baht, were launched in the first half
of the year, down from 120 billion baht
worth of projects launched in the same
period a year ago.
``The number of new supply launched
was stable but the value fell due to
a drop in the introduction of new luxury
condos in the cental business district,''
In the first half of the year, the largest
number of new housing units was for those
priced between 500,000 and one million
baht, with 7,719 new units on the market.
Another 6,294 new units were priced between
three and five million baht, and 6,274
cost between one and two million baht.
In terms of development value, units
priced at 3-5 million baht totalled 24.2
billion baht, followed by units priced
at 5-10 million baht worth 23.14 billion
baht and units priced at 10-20 million
baht worth 14.52 billion baht worth.
Mr Sophon said townhouses priced between
700,000 and one million baht in the outskirts
of Bangkok had good sales potential in
the second half of the year adding that
the development condos priced lower than
one million baht would pickup due to
increased demand from the budget segment
of the market.
He also noted that the introduction
of luxury condo units in the second half
of the year would slow down because of
heavy speculation in this segment last
year as well as the expectation of rising
interest rates in the months ahead.
The three most popular zones for developing
new housing projects in the first half
of the year were Ratchada-Lat Phrao,
Rangsit Klong 1-7, and Yannawa-Silom,
Mr Sophon said the sales rate of newly
launched projects averaged 15.9% per
month in the first half of the year,
up from 11.5% in the same period of 2004,
with the main driving force being intensive
sales promotions such as cash discounts
and the offering of free furniture.