IT is unbelievable but quite true that last month, when the coronavirus outbreak in this country was its scariest point and the whole country locked down, 13 real estate projects were launched adding 2,740 units to the market worth a total 10.335 billion baht.
Dr Sopon Pornchokchai, president of the Agency for Real Estate Affairs (AREA) said today (19.5.2020) that townhouses were the developers’ favourite with 1,703 units, or 62.2%, launched last month. This has been the pattern for three consecutive months now.
Single houses ranked second with 455 units (16.6%) launched and taking the third place were condominiums with 401 units (14.6%) unveiled.
The total value of the projects introduced in April was 10.335 billion baht. Most of these new units were in the moderate to low price range of not more than 3 million baht, covering 52%, with residences costing 3-5 million baht coming next totaling 27%.
In terms of development value, townhouses again came first with 5.021 billion baht investment, next was single houses with 2.472 billion baht and third condominiums 1.478 billion baht.
However the Covid-19 crisis did have an impact on all spheres of the market, be it the number of projects, the number of units sold, project value or average selling price which dropped by about 4%.
That the average selling price dipped is because the number of units sold priced not more than 5 million baht totaled 2,165, or 79% of the total sales that month.
Average price for a unit sold in April was 3.772 million baht, but in the previous month it was 3.913 million baht which shows that the trend to develop property for middle-come people has picked up
Of the developers launching new projects last month three were listed companies, namely Supalai Plc, Eastern Star Real Estate Plc and Areeya Property Plc. Aside from that there were two affiliated companies and a number of other general companies that did so.
Only one project was launched in the inner city while six were introduced in intermediate areas such as those along Songprapha, Ram Inthra, Kanchanapisek and Bangna-Trad roads and highways, and another six in outer areas near work sites and residential communities around Sai Noi, Rangsit-Nakhon Nayok and Bang Phli Yai zones.
Top: Bangkok at night. Photo: Drmtoiber (CC BY 2.0)