Collier Report - Condominium Q3 2013

8/13/2019 Collier Report - Condominium Q3 2013

1/13COLLIERS INTERNATIONAL | P.1

Q2 2013 - Q3 2013

NEW SUPPLY

NEW LAUNCHES

PRICES

TAKE-UP

THAILAND

www.colliers.co.th

Q3 2013 | CONDOMINIUM

MARKET INDICATORS

BANGKOK CONDOMINIUM MARKETREPORT

Bangkok Condominium Market

Approximately 11,240 condominium units were launched in the third quarter of 2013, down by

around 1,330 units from the previous quarter, but many more projects are planned for launch

in the last quarter.

Listed developers are still the main players in the Bangkok condominium market and they

cover all market segments.

The average price of all condominium units in Q3 2013 was similar to the price in the prevous

quarter. Although most condominium projects were launched in the Urban Bangkok Area, the

average price in the City Area was lower than in the previous quarter.

The take-up rate of newly launched units in Q3 2013 was approximately 52% lower than in

Q2, with projects in the City Area, Suburban Bangkok and Northern Fringe Area attracting the

most interest.

EXECUTIVE SUMMARY


2/13

BANGKOK CONDOMINIUM REPORT| Q3 2013

COLLIERS INTERNATIONAL | P.2

The number of new launches in Q3 2013 decreased from the previous

quarter by around 10.5%. Approximately 11,240 units were launched in

the third quarter with most of them located in urban areas and focusing

on the middle-income market.

The number of newly launched units in the Suburban Bangkok Area in

the second quarter of 2013 was less than in the rst quarter and

continued to decrease in the third quarter. This was because developers

were concerned about household debt in the middle-to-low income

market and focused more on the higher-income market in the city area

and along the new extensions of mass transit systems. In addition, the

number of units launched in the Suburban Bangkok Area this quarter

was the lowest of the past few quarters.

Source: Colliers International Thailand Research

Note: E = Estimated gures at the end of the year

NEWLY LAUNCHED CONDOMINIUM UNITS BETWEEN 2011 AND Q3 2013 BY QUARTER

NEWLY LAUNCHED CONDOMINIUM UNITS IN Q3 2013 BY LOCATION



3/13


4/13



FUTURE SUPPLY URBAN BANGKOK

Approximately 60% of total condominium units in Bangkok, or more

than 232,600 units, are located in the Suburban Bangkok Area. Within

the urban Bangkok area, the Northern Fringe contains the most

condominiums, with more than 49,100 units, followed by the City Area

with around 32,790 units. The Northern Fringe Area will maintain its

second largest share of the Bangkok condominium market for the next

two to three years, as many condominium projects were launched in

the area during the recent past.

Source: Department of Land, Colliers International Thailand Research


Notes: 1. Supply does not include units in the Suburban Bangkok area.

2. Based on developers estimates of completion dates.

TOTAL HISTORICAL SUPPLY BY LOCATION, Q3 2013

CUMULATIVE FUTURE SUPPLY SCHEDULED TO BE COMPLETED FROM Q4 2013 TO 2015 BY LOCATION IN URBAN BANGKOK, Q3 2013


5/13



DEMAND

The average take-up rate for new condominium projects launched in

the third quarter of 2013 was only around 52%, lower than in the

previous quarter (second quarter). Many condominium projects were

launched in September and had a low take-up rate. The average take-

up rate in the City Area is the highest at approximately 76%, although

the average price of newly launched condominiums in this location is

higher than THB140,000 per sq m. However, these units are in good

locations and not far from BTS stations. The average take-up rate in

the Suburban Bangkok Area came second at approximately 68%.


AVERAGE TAKE-UP RATE OF NEWLY LAUNCHED UNITS FROM 2012 TO Q3 2013 BY LOCATION


6/13



LAUNCHES WITH HIGH TAKE-UP RATES IN Q3 2013

Pruksa Real Estate Plc has launched two new condominium projects

in two locations and with dierent target groups. The Reserve, on

Rama 1 Road and close to the BTS National Stadium station as well as

many shopping malls, was well-received and sold nearly 100% of the

total of 273 units within one month.

The other new condominium project by Pruksa is Chapter One

the Campus on Phahonyothin Road and nearby Kasetsart

University. All of its 768 units were sold out after the ocial

launch in August. Many of the units are studio and one-bedroom.

The Room Rama 4 by Land & Houses Plc. on Rama 4 Road is not farfrom MRT Hua Lamphong station. This project has a total of 266 units,

with an average price of more than THB130,000 per sq m. More than90% of the units were sold within one month.


7/13


8/13



MASS TRANSIT EFFECT

AVERAGE SELLING PRICE FOR NEWLY LAUNCHED PROJECTS BY PROXIMITY TO EXISTING MASS TRANSIT LINES IN Q3 2013

TAKE-UP RATE FOR NEWLY LAUNCHED PROJECTS BY PROXIMITY TO EXISTING MASS TRANSIT LINES IN Q3 2013



The average price for projects less than 200 metres from existing BTS

/ MRT stations was approximately THB120,000 per sq m, the price of

projects located along BTS lines was around THB 126,000 per sq m,

around 8% higher than along MRT lines. The condominium price for all

projects located from 201-500 metres away was similar to those of

projects less than 200 metres away, while the average price of all

condominium projects launched in the third quarter that are located

more than 1,000 metres from existing BTS and MRT stations was

THB63,150 per sq m, 6.5% higher than in the previous quarter.

The take-up rate for projects less than 200 metres from existing BTS

and MRT stations was the highest at around 63%, although the average

price was higher than for other locations. Projects at a distance from

BTS / MRT of from 500-1,000 metres had the lowest take-up rate but

it was approximately 50%, higher than the previous quarter (37%).

Because these projects had similar prices to those further than 1,000

metres away, many buyers became interested.


9/13



FINANCING

FORECAST

HOUSING LOANS FOR PERSONAL CONSUMPTION EXTENDED BY FINANCIAL INSTITUTIONS

Source: Bank of Thailand and Colliers International Thailand Research

Remark: Excludes negligible amounts of nancing from other sources; percentage change is comparable QoQ

The growth rate for housing loans in the second quarter of 2013

increased by approximately 2.4% compared to the rst quarter. During

the past few months the number of unapproved mortgage loans by

commercial banks increased, but most of them were for buyers in the

in low income group and this directly aected the low-end market.

However, loans to other income groups continued to grow, so housing

loans of all commercial banks and other nancial institutions increased.

More than 60,000 units are scheduled to be completed in the last

quarter of 2013, but the labour shortage problem has aected all

property sectors in Thailand. Most condominium projects in Bangkok

have delayed their construction progress and postponed completion to

next year. In addition, the labour problem will continue to grow and

aect the property sector.

More than 80% of all condominium projects launched in the third

quarter of 2013 were developed by listed companies or theirsubsidiaries. During the past few years all listed developers have

launched sub-brands for the mid to low-income level in order to cover

all market segments. All new and SMEs developers were aected by

this strategy which made them study the market more thoroughly

before launching new projects, otherwise they might launch projects in

the same segment and in the same location as listed developers. In

addition, the condominium market will become a big-name developer

market in the future.

The Bangkok condominium market still has room to growth and there

is no strong indication of an oversupply crisis, although a high number

of new condominium projects were launched during the past few

quarters and some of them still have units available. While many

condominium projects from well-known and reliable developers were

sold out or received a high take-up rate there were some which were

unsuccessful.

Developers are monitoring the condominium market situation all thetime, and they are now targeting their new launches in the third quarter

at higher-income buyers, with higher prices and in the Urban Bangkok

Area. This is because household debt has aected the mid-to-low

income bracket earners, so that all developers will in the future focus

more on the middle-income group. However, for some of them it will

be dicult to leave the low-income market.


10/13

BANGKOK OFFICE REPORT| Q3 2013

APPENDIX


11/13



ZONING MAP


12/13



COLLIERS INTERNATIONAL THAILAND

MANAGEMENT TEAM

PROJECT SALES & MARKETING

Wanna Sutitosatham | Associate Director

OFFICE SERVICES

Nattawan Radomyos | Senior Manager

RESEARCH

Surachet Kongcheep | Associate Director

ADVISORY SERVICES | HOSPITALITY

Jean Marc Garret | Director

RETAIL SERVICES

Asharawan Wachananont | Associate Director

RESIDENTIAL SALES & LEASING

Napaswan Chotephard | Manager

INDUSTRIAL SERVICES

Narumon Rodsiravoraphat | Associate Director

ADVISORY SERVICES

Napatr Tienchutima | Associate Director

REAL ESTATE MANAGEMENT SERVICES

Thanasit Tonsatcha | Associate Director

INVESTMENT SERVICES

Nukarn Suwatikul | Associate Director

Ravinthorn Toungtrikoon | Senior Manager

VALUATION & ADVISORY SERVICES

Phachsanun Phormthananunta | Director

PATTAYA OFFICE

Mark Bowling | Senior Sales Manager

Supannee Starojitski | Senior Business Development

Manager / Office Manager

HUA HIN OFFICE

Sunchai Kooakachai | Associate Director

RESEARCHER:

ThailandSurachet KongcheepAssociate Director | Research

EMAIL [email protected]

This report and other research materials may be found on our website at www.colliers.co.th. Questionsrelated to information herein should be directed to the Research Department at the number indicatedabove. This document has been prepared by Colliers International for advertising and general informationonly. Colliers International makes no guarantees, representations or warranties of any kind, expressed orimplied, regarding the information including, but not limited to, warranties of content, accuracy and reli-ability. Any interested party should undertake their own inquiries as to the accuracy of the information.Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties aris-ing out of this document and excludes all liability for loss and damages arising there from. Colliers Inter-national is a worldwide aliation of independently owned and operated companies.

Accelerating success.

COLLIERS INTERNATIONAL THAILAND:

Bangkok Ofce17/F Ploenchit Center,2 Sukhumvit Road, Klongtoey,Bangkok 10110 Thailand

TEL +662 656 7000

FAX +662 656 7111EMAIL [email protected]

Pattaya Ofce519/4-5, Pattaya Second Road (Opposite Central FestivalPattaya Beach), Nongprue, Banglamung, Chonburi 20150

TEL +6638 427 771

FAX +6638 427 772

EMAIL [email protected] Hin Ofce27/7, Petchakasem Road, Hua Hin,Prachuap Khiri Khan 77110 Thailand

TEL +6632 530 177

FAX +6632 530 677

EMAIL [email protected]

482 oces in 62 countrieson 6 continentsA leader in real estate consultancy worldwide

2nd most recognized commercial real estate brandglobally

2nd largest property manager

1.1 billion square feet under management

Over 13,500 professionals


13/13


Documents

Collier Report - Condominium Q3 2013