Thai property in Bangkok has an oversupply of property in the market. Even though prices are still very high there might just be a break this year when it comes to condominiums. According to Thai property sources, the current oversupply of condo units in Bangkok is mainly in what they would call the Thai sector of the housing market.
Property under 1 million Baht has seen an increase in developments over the last 3 years however they are now in an oversupply situation. The question is how much oversupply is there and will it bring down prices in the sector. Also, would this affect the more affluent condo units on sale?
In Bangkok, there are currently more than 1,100 property developments and this includes the outskirts of the city. The market has not as yet seen any prices decreases and the property agents view this as a short term oversupply but that it would not affect the prices on the larger more expensive units. The upmarket units they point out has seen a more than 10% increase in value over the past 12 months alone. Property mainly those properties located near the new expanded MRT has seen the biggest increases by as much as 45% over the past 3 years.
The larger developments are mainly done by the listed companies. As of this year, they are currently the largest sellers of new units accounting for more than 55% of the property market sales based on value. As can be seen, the smaller units which are normally bought by Thai’s are the only market which is seeing the oversupply. Last year the largest property development company in Thailand Pruksa launched a total of 40 projects with more than 9,000 units combined. From the numbers, one can tell that these are very large property developments for the high-end market.
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