Bangkok condo new launches set to slow in 2011

Launches of condominium projects in Bangkok are expected to decline by 10-15 per cent this year due to high supply carrying over from last year says the big boss of Thailand’s largest property developer Pruksa Real Estate (PS).

As reported in Bangkok Post newspaper, new condominium launches in 2011 will have to compete with remaining units from projects launched in recent years, as well as resale units offered by investors and speculators. However, the slowdown in condo market will be made up by low-rise units

PS’s president and chief executive Thongma Vijitpongpun added that higher land and construction costs were also factors that caused the market to slow down. He said: “Land costs for condominium development are higher, while prices of construction materials are increasing. As a result, presales of new condo projects should be about 50 per cent.”

During the first seven weeks of this year, PS launched 15 new projects worth a combined THB10 billion (US$327.2 million). The company generated sales of THB5.5 billion (US$180 million) during the period, with positive sales performance of low-rise units accounting for THB5 billion (US$164 million).

According to Thongma, the company will remain its project launch plan and an investment budget of about THB13 billion (US$425.4 million) for buying new land.

Last year, it had presales of THB38.75 billion (US$1.3 billion), about THB700 million (US$23 million) of which was from international sales. It currently has a sales backlog of THB30.6 billion (US$1 billion) ready to transfer this year.