Condos in downtown Bangkok take a hit

The number of new condominiums launched in the first quarter of this year has dropped by 36 percent compared with the same period last year – the result of the financial crisis and home-grown political instability – according to property brokerage Century 21 Thailand.

In the first quarter 1,671 units were launched with average selling prices up by 1.1 percent.

Bangkok´s downtown condo supply grew by 9.5 year-on-year in the second quarter of 2008, achieving 53,077 units.

Century 21 believes 2009 will be a tough year for the capital´s downtown condominium market. It expects 12,000 units will be completed within the year, while about 7,000 are scheduled for completion in the second half, bringing the total in Bangkok to around 65,000 units.

Critical factors, said the agency, would be completing projects on time, the quality promised, and the willingness and ability of customers to complete transfers.

Century 21 predicts that developers will use bond offerings to help raise funds as banks and financial institutions tighten their credit lines.

Asia Property Report - 2009 July 02 - News