The real estate landscape in Bangkok is witnessing a notable shift in condominium prices. Lower Sukhumvit has emerged as the focal point of a substantial surge in prices, contributing to the overall upward trajectory in the city. In contrast, neighboring provinces are grappling with a decline in prices, primarily attributed to an excess of unsold units.
Vichai Viratkapan, the acting director-general of the Real Estate Information Center (REIC), recently highlighted a consistent year-on-year increase in the price index of new condominium units in Bangkok. This trend has persisted over the past four quarters, commencing in the first quarter of 2023. According to Viratkapan, the condo price index in Bangkok is unequivocally on an upward trend, with lower Sukhumvit leading the way in the 7.51-10 million baht per unit price range.
Beyond lower Sukhumvit, other areas such as Thon Buri and the Lat Phrao-Wang Thong Lang-Bang Kapi zone have experienced notable increases, specifically in the 3.01-5 million baht price range.
In the Greater Bangkok region, which encompasses Bangkok, Nonthaburi, and Samut Prakarn, the price index for new condo units saw a 2.7% rise to 154.3 in the fourth quarter of 2023 compared to the same period in 2022. The primary impetus behind this increase was the 3.5% rise in the price index within Bangkok, reaching 157.3. However, it’s worth noting a marginal 0.5% decrease from the third quarter, attributed to a strategic decline in response to developers implementing year-end sales campaigns.
Viratkapan also pointed out a consistent year-on-year decline in the price index of condo units in Bangkok’s neighboring provinces, Samut Prakan and Nonthaburi. This decline, observed over five consecutive quarters since the fourth quarter of 2022, is largely attributed to a surplus of unsold units from projects initiated before 2021. The maintenance of construction costs based on earlier material and labor rates prompted developers to respond with discounts and campaigns, constituting 71.5% of the sales strategy in the fourth quarter of 2023.
According to REIS, the condo price index in Samut Prakan and Nonthaburi for the fourth quarter of 2023 was 141.2, reflecting a 0.9% year-on-year decrease and a 0.2% decrease from the third quarter of 2023.
In conclusion, Viratkapan highlighted, “The condo price index in these two provinces continues to decline due to consecutive year-on-year decreases over five quarters, from the fourth quarter of 2021 to the fourth quarter of 2022.” Notably, Muang Samut Prakan-Phra Pradaeng-Phra Samut Chedi, Muang Nonthaburi-Pak Kret, and the Bang Phli-Bang Bo-Bang Sao Thing zone have witnessed the most significant decreases, characterized by high competition and a notable inventory of unsold units in the 1.01-1.5 million baht, 2.01-3 million baht, and 2.01-3 million baht price ranges, respectively.
(Source: Bangkok Post)