Bangkok condominiums: from high-rise to low-rise

The supply of low-rise condominiums in Greater Bangkok has increased and is expected to reach 2005 peak

The supply of new condominiums in Greater Bangkok has declined an estimated 10 per cent this year, while the number of new low-rise units is increasing, according to a report released by the Real Estate Information Center (REIC).

Land allotment permits for low-rise units, excluding vacant land lots totalled 27,400 units in the first half of the year, up from 19,800 in the same period of last year. The increase in low-rise units is expected to equal the peak witnessed in 2005.

According to the Bangkok Post, last year, low-rise permits totalled about 51,400 units, up from about 42,600 units in 2009.

Meanwhile, the number of new high-rise housing construction permits in Greater Bangkok in the first quarter dropped to 260 buildings containing 1.51 million sqm from 302 buildings with 1.59 million sqm in the fourth quarter of 2010.

The first quarter of last year saw 268 buildings with 1.64 million sq m, and this segment has been declining every year since 2007. Samma Kitsin, director-general of the REIC said the condominium sector had cooled due to over supply.

He predicted the number of new condo units launched in Greater Bangkok this year to be around 60,000 down from 66,000 last year.