_Condominium Market Q1 2024

The condominium market in Q1 2024 was weak in terms of purchasing demand as consumers were spending cautiously and household debts were continuously increasing causing commercial banks to reject loans up to 50%.

July 17, 2024

Market Overview

The condominium market in Q1 2024 was weak in terms of purchasing demand as consumers were spending cautiously and household debts were continuously increasing, causing commercial banks to reject loans up to 50%. As a result, demand for residential units decreased even though developers offered various promotional campaigns to stimulate sale. The housing developer sentiment index (HDSI) was below average. In this quarter, it was found that listed company developers launched fewer new projects than those of non-listed company developers.

During Q1 2024, the number of newly launched for sale dramatically decreased to 6,080 units, representing a decrease of 86.1% compared to the previous quarter and a decrease of 14.9% compared to the same period last year. There were only 17 new projects launched for sale, consisting of 2,240 units from listed company developers and 3,840 units from non-listed company developers. The most popular new supply launched for sale was grade C, accounting for 68% of the total, followed by grade B accounting for 29%, super prime accounting for 3% and none from grade A segment. The total supply of newly launched condominiums in suburban areas of Bangkok accounted for 83%, an increase of 13% from the previous quarter. While areas around the central business district accounted for 14% and Bangkok city center areas accounted for 3%. Launching a grade C project might be difficult as the group of real demand is non-investor buyers who are quite careful with their spending despite measures to stimulate the real estate sector such as reducing registration, transfer and mortgage fees in an amount not exceeding 7 million baht.