1. year end 2010 | Condominium
THAIlANd
Bangkok Condominium
market rePort
Bangkok Condominium Market
ExECuTIvE SummARy
new launches in Q4 2010 continued to surge on the back of continued confidence in the residential
market and affordable units being offered by developers. overall 2010 represented a landmark
year for the condominium market with over 60,000 units being launched in total.
2011 is set for another strong year for condominium launches but is then expected to moderate
and a supply bubble is likely to be avoided as developers and authorities pay close attention to the
market and its constraints. this year will represent a move from boom to consolidation.
mARKET INdICAToRS
developers are dividing their attention to both urban and suburban Bangkok, with a similar number
2009 - 2010
being launched in both areas. Suburban Bangkok still remains firmly on the radar with listed
developers targeting the low to mid end segment of the market, however non-listed developers are
Supply
fighting back in Q4 2010 with many players launching smaller scale projects thus providing healthy
lAuNCHES competition in the market.
pRICES issues regarding transport access to mass transit stations mean that the positive effects of these
lines is not being fully realized and could be a problem for future new lines.
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2. Bangkok Condominium market rePort | Q4 2010
NEwly lAuNCHEd CoNdomINIum uNITS duRINg THE yEAR 2009 – Q4 2010 by QuARTER
Source : Colliers international thailand research
newly launched units in the fourth quarter of 2010 slightly decreased but were resumed in Q3 and then continued forwards for Q4 2010. the
from Q3 2010 by 2,500 units. approximately 20,000 units were launched total number of newly launched units in 2010 was approximately 61,000,
in Q4 2010. many launches were put on hold due to the protests in Q2 a nearly 80% increase from 2009.
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3. Bangkok Condominium market rePort | Q4 2010
ZoNINg
HISToRICAl Supply by yEAR
CumulATIvE Supply IN bANgKoK
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4. Bangkok Condominium market rePort | Q4 2010
• CITY AREA • OUTER CITY AREA
the area covers four adjacent but competing sub-markets: the Sukhumvit the area covers two parts of Bangkok:
section comprising Sukhumvit road between Soi 1 and Soi 55 to the
north and Soi 2 and Soi 38 to the south; the Central Lumpini section o Outer City (East): this section starts from the extension of the BtS
including Phloen Chit road, rama i road, Soi Langsuan, Soi Sarasin, route at on nut Station to the Bangkok boundary to the east.
Chitlom road ratchadamri road, Witthayu road and rachaprasong o Outer City (West): this section starts from the extension of the BtS
road; the Silom / Sathorn section; and the riverside section fronting the route at taksin Station to Bang Wa station which includes the area from
Chaophraya river along Charoenkrung road and Charoennakorn road, krung thonburi road to ratchaphruek road near Petchakasem
where several five-star hotels are located. the City area is convenient intersection.
for businessmen, expatriates and tourists, because of its proximity to
many office buildings, retailing and local attractions. • SUBURBAN BANGKOK
these are the environs outside the areas already mentioned. expansion
• CITY FRINGE AREA of the mass transit system is the main determinant for increasing future
this area covers three parts of Bangkok: supply in a particular area. the expansion from on - nut to Samut
Prakarn is scheduled to be completed in 2011. the expansion of the BtS
o Northern Fringe: this section covers the BtS route starting from will benefit directly the surrounding condominiums, as it will considerably
ratchathewi Station to mo Chit Station to the north and the mrt route reduce transportation costs and time. this will encourage the development
starting from Petchaburi station to Bangsue station to the north. of new condominiums in this area. Suburban Bangkok represents the
o Southern Fringe: this section covers narathiwad ratchanakarin road, biggest area and for the purposes of this report includes Bangkok city old
Chan road, Sathupradit road, Charoenkrung road and rama iii road town (koh rattanakosin area and boundary area). this location has
along the Chaophraya river. comprehensive town planning controls restricting building height, so
o Eastern Fringe: this section covers the BtS route starting from thong there are no condominium projects in the area.
Lor Station to on nut Station to the east, rama iV road and Petchaburi
road,
this area covers locations with their own local infrastructure and
convenient transportation but require commuting to have access to the
central business and entertainment areas.
NEwly lAuNCHEd CoNdomINIum uNITS IN Q4 2010 by loCATIoN
Source : Colliers international thailand research
in Q4 2010 the suburban Bangkok area slightly trumped urban Bangkok LPn development Plc. launched the “Lumpini Park riverside rama 3”, a
with the higher number of units launched. new riverside condominium project on rama 3 road in the Southern
Fringe area with a total of 2,405 units and this was the largest project in
Within urban Bangkok, the eastern Fringe area has shown the highest this quarter and for the year as a whole.
numbers with approximately 3,500 units, a nearly 31% increase from Q3.
the northern Fringe came very close second.
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5. Bangkok Condominium market rePort | Q4 2010
A COmpARISON OF NEWlY lAUNChEd UNITS BY lISTEd COmpANIES ANd NON lISTEd COmpANIES dURING Q1 2009 – Q4 2010
Source : Colliers international thailand research
remark : Listed companies include subsidiaries
in Q4 of 2010 listed companies still served up the largest share of newly this quarter is the highest of the past two years. many are smaller in
launched units, although the number of newly launched units by non scope than those put on the market by the listed developers but lesser
listed companies increased from Q3 by approximately 1,300 units known developers are once again dipping their toes into the condominium
meanwhile newly launched units by listed companies decreased by pond.
nearly 2,400 units. the newly launched units by non listed companies
NEwly lAuNCHEd CoNdomINIum uNITS IN CITy AREA, Q1 2009 – Q4 2010
Source : Colliers international thailand research
more than 2,500 units were launched in the City area for Q3, but in the protests which began in February 2010 but was ratcheted up in april
last quarter of 2010 just 400 units were launched. the limited number and may. this delayed launches to Q3 2010.
of launches in the first half of the year was a direct consequence of the
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6. Bangkok Condominium market rePort | Q4 2010
NEWlY lAUNChEd CONdOmINIUm UNITS IN NORThERN FRINGE AREA, Q1 2009 – Q4 2010
Source : Colliers international thailand research
newly launched condominium units in the northern Fringe area 3,300 units in Q4.
dramatically increased to more than 4,300 units in Q3 and approximately
HISToRICAl Supply
SUpplY OF CONdOmINIUm UNITS 1994 - 2010
Source : department of Land, Colliers international thailand research
remark : the number of units does not include projects from the national Housing authority
only approximately 6,000 new condominium units were completed and 2009 of nearly 15%. this decline is a reflection of the onset of the global
registered at the department of Land in Q4 2010 and the total number in Financial Crisis which led to developers putting plans on hold and this is
2010 was approximately 24,700 units, which represented a fall from now affecting the figures for new supply.
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7. Bangkok Condominium market rePort | Q4 2010
ToTAl HISToRICAl Supply by loCATIoN To Q4 2010
Source : department of Land, Colliers international thailand research
around 66% of total condominium units are located in the suburban proximity to the centre, mass transit connections and relatively lower
Bangkok area with a total of more than 190,000 units. Within the urban land prices compared to the City area.
Bangkok area, the northern Fringe contains the most units due to its
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8. Bangkok Condominium market rePort | Q4 2010
AddITIoNAl Supply pER QuARTER | CITy AREA, Q1 2009 – Q4 2010
Source : Colliers international thailand research
approximately 770 units were added in Q4 2010 and so total supply in scheduled to be completed in 2011.
this area amounted to around 23,000 units. roughly 6,600 units are
AddITIONAl SUpplY pER QUARTER | NORThERN FRINGE AREA, Q1 2009 – Q4 2010
Source : Colliers international thailand research
approximately 2,600 units were added in Q4 2010, a significant addition ratchadapisek, ari and Sutthisan road. the northern Fringe contains a
from just over 500 in Q3. this area still remains the main target for significant number of BtS and mrt stations, the key public transportation
condominium projects in the near future, especially Phahonyothin, arteries in Bangkok.
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9. Bangkok Condominium market rePort | Q4 2010
FUTURE SUpplY – URBAN BANGKOK
CUmUlATIvE FUTURE SUpplY SChEdUlEd TO BE COmplETEd dURING ThE YEAR 2011 – 2013
BY lOCATION IN URBAN BANGKOK. (AS OF Q4 2010)
Source : Colliers international thailand research
remark : Supply does not included unit in Suburban Bangkok
approximately 25,000 units are scheduled to be completed in 2011. the followed by the City area with a total number of around 6,700 units. it is
northern Fringe area continues to be the main player in urban Bangkok expected that the northern Fringe will continue to dominate supply for
with approximately 10,700 units scheduled to be completed in 2011 and the early part of the decade in urban Bangkok.
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10. Bangkok Condominium market rePort | Q4 2010
TAKE up
SAlES pROpORTION OF NEWlY lAUNChEd UNITS IN Q4 2010 BY lOCATION
Source : Colliers international thailand research
the average take up rate of newly launched condominiums in 2010 was nut-Bearing extension line spurred take up in the outer City- east area.
around 56% representing a decrease from 61% in 2009. Considering the
number of units launched for 2010 this number is still a robust one. in the fourth quarter the Bank of thailand introduced measures to control
the condominium market, with a loan-to-value of 90 percent of new
the occupancy rate in the Southern Fringe area was the highest followed condominium units below 10 million baht as of January 1 of 2011. this
by the City area and outer City - east area. the positive figures for the new policy had a positive effect on the market in Q4 of 2010, because
Southern Fringe are the result of a popular newly launched project from buyers were more likely to make a decision to buy by the end of the
LPn development in the Southern Fringe area. the progress of the on year.
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11. Bangkok Condominium market rePort | Q4 2010
AvERAGE SAlES pROpORTION OF NEWlY lAUNChEd UNITS IN 2010 BY lOCATION
Source : Colliers international thailand research
the average take up rate for newly launched condominium projects in northern Fringe. many BtS / mrt stations are located in this area and
Bangkok in the year 2010 was approximately 56%. the take up rate in the selling prices are still lower than other areas along mass transit line,
the northern Fringe area is the highest followed by the City area and such as Sukhumvit, Silom, rajadamri and Phayathai road.
suburban Bangkok area. Various factors explain the high numbers for the
lAuNCHES wITH HIgH TAKE up RATES IN Q4 2010
onyx Phahonyothin by Sansiri Plc. showed the highest take up rate of baht per sq m. unit area starts from 25 sq m for a studio unit up to 67.5
almost 100% of its 620 units with a selling price of more than 90,000 sq m for 2 bedroom units. the project is located on Phahonyothin road
approximately 550 meters from BtS Saphan kwai Station.
regent Home 13 Sukhumvit 93 by regent green Power Co., Ltd. is
located in Sukhumvit soi 93 with a total of 270 units in the outer City –
east area and had one of the highest take up rates. the building contained
only studio units at just 31 sq m with a selling price of lower than
1,000,000 baht per unit.
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12. Bangkok Condominium market rePort | Q4 2010
TAKE up RATE IN pRoxImITy To ExISTINg mASS TRANSIT lINES Q4 2010
Source : Colliers international thailand research
the take up rate of projects 501 – 1,000 meters from BtS / mrt was magnet for buyers, the selling price is also higher than other areas, so
highest at around 60% and similar to the area more than a kilometre many buyers are more interested location 501 – 1,000 meters from a
from the BtS/mrt. While access to mass transit remains a strong mass transit station which represents more affordable units.
THE AvERAgE TAKES up IN pRoxImITy To ExISTINg mASS TRANSIT STATIoNS IN THE yEAR 2010
Source : Colliers international thailand research
the take up rate of condominium projects within 200 meters of mass of the way sois and poor feeder systems but with selling prices still high
transit stations came close to 72%, a high figure considering the relatively or similar to projects located on the main road or nearer to BtS / mrt
higher prices. However projects located 201 – 500 meters from BtS / lines. Projects located further than 1,000 meters came second at nearly
mrt lines showed the lowest rate of around 41%. this figure is due to 65% due to the lower selling price of projects.
many projects being located away from the main road, sometimes in out
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13. Bangkok Condominium market rePort | Q4 2010
INITIAl lAuNCH pRICES
AvERAGE SEllING pRICES OF NEWlY lAUNChEd pROjECTS Q1 – Q4 2010
Source : Colliers international thailand research
the average selling price in the City area is still highest at nearly 110,000 new BtS extension line and many projects in this area are high-end
Baht per sq m, and the average selling price in Q2 and Q4 was higher ones, therefore the average selling price is higher than other areas.
than 100,000 Baht per sq m. the outer City –West is the area along the
lAUNCh pRICES : mASS TRANSIT EFFECT
SEllING pRICES OF NEWlY lAUNChEd pROjECTS BY pROxImITY TO mASS TRANSIT lINES (BTS ANd mRT), Q1 - Q4 2010
Source : Colliers international thailand research
the average selling price in the City area is still highest at nearly 110,000 new BtS extension line and many projects in this area are high-end
Baht per sq m, and the average selling price in Q2 and Q4 was higher ones, therefore the average selling price is higher than other areas.
than 100,000 Baht per sq m. the outer City –West is the area along the
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14. Bangkok Condominium market rePort | Q4 2010
mASS TRANSIT – THE dRAw ANd THE dRAwbACK
in a survey in the Journal of the eastern asia Society for transportation
Studies, Vol.8, 2009 called “influences of Paratransit as a Feeder of
mass transit System in developing Countries Based on Commuter
Satisfaction”, commuters to on nut BtS and Huay khwang mrt were
asked various questions regarding how they access the stations. Fifty
five percent of those living within one kilometre of a station walk to the
station while 30% take motorbike taxi and 10% take a bus or songtaew.
Within 200 metres a walk does not offer much discomfort in regards to
the heat, however after this distance a walk becomes more onerous and
the appeal of a motorbike becomes much stronger. in the same survey
users of this mode of transport were dissatisfied with the cost as well as
safety and weather protection. this likely accounts for the reduced effect
on pricing after 200 metres from the mass transit stations. in general
terms the feeder systems to the mass transit stations are considered
poor with a low satisfaction in the survey with the waiting times, poor
scheduling, en-route stops and the comfort of songtaews. this means
that little pricing premium results from locations further than 200 meters
and therefore mass transit lines are not making the most of their
infrastructure.
TRENdS
IN ThE YEAR 2010 lISTEd dEvElOpERS ARE FOCUSING
moRE IN THE SubuRbAN bANgKoK AREA ANd lowER -
mId RANgE mARKET
in 2009 listed developers and their subsidiaries accounted for around
18,000 condominium units launched in Bangkok but in 2010 more than
41,000 units were launched representing an increase of 122%. Just over
half of the total units of listed developers were located in suburban
Bangkok where the selling price is lower than 3 million baht per unit.
this was the result of listed companies setting up new brands to focus
on the growth in the lower – mid range market and most of these are
located in the suburban Bangkok area due to lower land prices. this
situation may affect non listed companies penetrating the market in the
near future, as projects from a listed company can be more attractive to
buyers with usually better financing options and brand strength. However
smaller developers are fighting back with smaller scale projects.
NEW pOlICIES FROm BANK OF ThAIlANd TO CONTROl ThE CONdOmINIUm mARKET
the Bank of thailand introduced measures to control the condominium this will also affect small and medium sized developers, due to the
market in the last quarter of 2010, with a 90 percent loan-to-value limit reduction in the purchasing power of buyers. the gradual increase in
on new condominium units below 10 million baht as of January 1 of interest rates is also likely to act as a dampening on condominium
2011. launches going forward.
the Bank of thailand’s policies will affect to the decision of the buyers
in 2011, as they need to have at least 10% of total value whereas in 2010
some commercial banks provided 100% loans with zero down payment,
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15. Bangkok Condominium market rePort | Q4 2010
FINANCING
hOUSING lOANS FOR pERSONAl CONSUmpTION ExTENdEd BY FINANCIAl INSTITUTIONS
Source : Bank of thailand and Colliers international thailand research
note: excludes negligible amounts of financing from other sources. Percentage change is comparable quarter to quarter.
the growth rate of housing loans increased more than 3% in Q3 2009 housing loans in that period compared to other periods. the amount of
– Q1 2010 because of the government’s incentives attracted buyers to loans continues to grow but at a more sustained pace.
purchase and transfer by the second quarter of 2010. this boosted
THE luxuRy CoNdomINIum mARKET
luxuRy CoNdomINIum uNITS lAuNCHEd duRINg Q1 2009 – Q4 2010
Source : Colliers international thailand research
Sansiri Plc launched a new project with approximately 140 units located dropped from Q3 by around 80%. this market segment continues to be
on Sukhumvit road but newly launched luxury condominium units a bit player in the overall condominium market.
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16. Bangkok Condominium market rePort | Q4 2010
FORECAST
Strong concerns about the booming condominium market continue in although there has been no tangible progress on some lines, many
the midst of more planned launches of condominium developments over property developers are already scrambling to occupy land along planned
the coming year. most developers do not launch on a whim but rather lines and are scheduled to develop projects or starting progress along
study the demographics and income levels in regards to future demand the more advanced Purple Line (Bang Sue – Bang Yai) and the green
for their products. as such it appears that target markets remain in Line (Wongwian Yai – Bang Wa). the issue confronting developers is
various income categories, especially the lower levels that have only how to make projects relatively close to mass transit lines more attractive
recently been tapped in earnest. the city continues to grow along with to buyers using improved ways for residents to access stations from
average incomes and for the foreseeable future a market will exist for their homes. regular, comfortable and affordable paratransit (from home
particular products. take up will slacken as buyers take their time in to mass transit station) would be the best way for this to happen.
choosing a place to live. the days of one day sell outs are behind us developers should consider retail/transport hubs on station locations
which points to a more mature market for lower end condominium units. connected by efficient bus feeder systems or even a light monorail as
the frenetic pace of launches will lessen over time but the condominium has been suggested by one developer.
success story has a long way to go.
mass transit remains a key factor to attract the developers and buyers.
the ministry of transportation has announced a master plan of BtS
extension lines covering the Bangkok metropolitan and vicinity area.
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17. Bangkok Condominium market rePort | Q4 2010
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