Condos : “Of the 50 000 units to be launched, about 46 % won’t be sold”

The chance of failure for condominium developers in Bangkok has grown to almost 50 per cent as competition heats up amid a glut of fresh supplies, warned Aquarius chief executive Yongyuth Chaipromprasert.

After conducting a study during the past five months, the building consultant said even inner Sukhumvit, an area once deemed immune to downturns, “no longer guarantees success”.

“The average take-up rate for Bangkok condominiums is now 54 per cent,” he said. “That is considerably lower than about 70 per cent for last year.”

“Of the 50,000 units that are expected to be launched this year, about 46 per cent won’t be sold,” he deduced from recent statistics. “One out of every two developments could fail.”

“The inventory left over from last year should also add to current stock, making the situation even tougher for sellers, especially newcomers,” he said.

With 15,000 unsold units from last year and 25,000 units from this year, the market will have an additional 40,000 units to clear in 2009. (Nation)

From time to time, Nation publishes a bearish article, AKA not written by the Boiler Room. Refreshing. 😉 Anyone can understand the problem : the market is flat (in volume)… but dozen of news condos are being built all over Bangkok… That leads to : over supply.

The Boiler Room hates this word… 😉

[look at the chart of condo registrations, from 2000 to 2007]

2 Responses to “Condos : “Of the 50 000 units to be launched, about 46 % won’t be sold””

  1. 1 lolo 14 August 2008 at 7:09 pm

    we need more condos in pattaya for ou local speculators. Everybody will get rich very soon

  1. 1 bkk in a funk at The FARANG Speaks 2 Much Trackback on 13 June 2008 at 3:35 am

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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