Bangkok Condominium Market Q4 2023

Market Overview

Number of newly launched supplies for sale from the beginning of the year until the last quarter of 2023 less than last year. In addition, the decreasing demand in the market is contrary to the outstanding units in the market, reflecting to a tight market condition. From the first to third quarter of 2023, condominiums priced between 1.9 - 2.8 million baht were launched for sale at 43% of total newly launched supplies for sale this year. And projects at this price levels were found to have relatively high market risk factors in terms of deteriorating purchasing power due to rising household debt and loan rejection from commercial banks, together with outstanding supplies that have not yet been sold. As such, newly launched supplies for sale priced lower than 3 million baht remain outstanding at approximately 50% of total outstanding units. As a result, the confidence index of residential property developer decreased by 2.1%. In the fourth quarter, developers altered themselves to cope with this situation by delaying the opening of projects lower than 3 million baht and launching more projects at the middle-upper price level (3.5 million baht and above) in order to capture groups with purchasing power and no credit problems which focusing on middle-upper income group and above. They also adjusted sales strategy to support lower-level projects so that it can be sold as quickly as possible.

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