Question: Is there an oversupply of condominiums in Bangkok?
We get this question very often and this is a topic that can get investors concerned. Every weekend, you can flip the newspapers and you will see several new launches in Bangkok happening.
So is there really an oncoming glut of condos in Bangkok?
It depends on what you buy.
It will be wrong put all the condominiums in Bangkok together and see them as one. There are the mass market ones, and then you have the investment grade condos.
We are always advocating that you should only be looking at the investment grade condos. These are condos located in the core central region of Bangkok.
In downtown Bangkok, the land is limited. It is difficult for you to spot an empty land. For developers such as Sansiri and Ananda to launch a brand new condo, they will first have to buy over existing land or old buildings.
This increasing land price and relatively short supply of prime properties have to lead to price growth over the years. These will also be the exact same properties which the expatriates favor due to the superior location and quality.
A lot of investors are attracted to the lower priced condos on offer in the outskirts of the city but those condos are many in supply. There is no public housing scheme in Bangkok. Thus, the developers are the one coming up with affordable housing for the local Thais. It will be rather difficult for such properties to attract expatriate tenants.