An article from Thansettakij notes that in 2023, real estate developers chose to delay launching new condominium projects. This decision was due to awaiting changes, including the establishment of a new government and real estate market stimulus policies.
By the fourth quarter of last year, developers began launching new projects as it became clear that the government had no policies directly impacting the real estate market. In the first quarter of this year, developers remained cautious and launched fewer new projects.
Despite discussions about stimulating the real estate market, only 3,290 condominium units were launched in the first quarter of 2024, a 72% decrease from the fourth quarter of 2023. Developers still lack confidence in Thai purchasing power.
Major listed developers remain the primary drivers of the market, with over 90% of new projects in the past year being from large developers. While these developers focus more on housing projects, they continue to launch new condominium projects.
In 2020, most new condominiums were priced below 100,000 baht per square meter or under 3 million baht. However, in 2023, the proportion of condominiums priced over 3 million baht increased. This shift may be due to lower-income buyers facing difficulties obtaining bank loans, leading developers to launch higher-priced projects to mitigate financial risks. This year, condominiums priced over 200,000 baht per square meter are expected to increase. In the first quarter, projects priced above 300,000 baht per square meter had high sales rates.
The trend for this year shows that large developers remain key players in the condominium market. Projects priced below 100,000 baht per square meter will be located along outer metro lines or in areas far from metro routes. Developers are focusing on long-term marketing rather than quick sales. Some buyers may wait to see government measures before deciding in the remaining months of the year.
The proportion of condominiums priced over 3 million baht or above 100,000 baht per square meter will increase. Foreign purchasing power is starting to return and is expected to grow this year, helping to drive the real estate market. (NNT)
