THE Greater Bangkok residential market is expected shrink by 39% year-on-year with new launches seen to bring in a total of 72,875 units compared to 118,975 units unveiled in 2019, the independent survey firm Agency for Real Estate Affairs (AREA) said today (June 18, 2020).
Dr Sopon Pornchokchai, president of AREA’s Research and Appraisal Information Centre, said in this sort of a situation even if the government introduces stimulus measures they would not give this market the required boost.
The survey of the first five months of this year showed that the situation improved in May when 32 residential projects were introduced to the market with altogether 4,471 units valued at 24.33 billion baht, or an average of 5.442 million baht per unit.
In making the full year forecast, by working on the theory that the number of projects could be 10%% higher than what has been surveyed because some projects might have been missed and these would be surveyed at yearend, the situation in the latter seven months would show 20% improvement over the first five months.
AREA expects that there will be a total of 357 residential project launches in 2020, a drop of 26% compared to 480 projects introduced last year.
The total number of units will reach 72,875 units, less than last year’s total of 118,975 units, or a drop of 39%.
The value of 2020’s housing projects will reach 305.096 billion baht, a decrease of 36% from last year’s total of 476.911 billion baht.
However the selling price is increasing slightly because developers have decreased the number of lower-priced projects as low-income people’s purchasing power has shrunk.
He pointed out that this projection is dependent on economic performance and if the economy is shaky no matter what stimulus measures are introduced it would not be of any help.
Top: Downtown Bangkok at night. Photo: Evo Flash (CC BY 2.0)