Condominium Market Showing Signs of Recovery

Century 21, a one-stop real estate service provider is confident condominium purchases will increase with the economic recovery. Singapore, Hong Kong and Thailand are looking positive with a projection of increases in prices in line with stronger demand.Property prices in Singapore and Hong Kong are soaring with investors seeking higher returns than interest rates. The company disclosed that condominium prices of between 60,000-80,000 baht per square meter are currently the most popular in Thailand and is confident that the prices will increase in the future. It also notes locations related to tourism business including Pattaya, Hua Hin, Phuket and Chiang Mai remain attractive. The company plans to set up a new franchises to tap foreign customers and suggests developers adjust strategies and build prominent features to prepare for high competition with large developers.

Mr. Kitisak Jampathipphong, CEO of Century 21 Realty Affiliates (Thailand), or Century 21 discloses that since 2009 the overall condominium market in Thailand has grown, especially from the increasing domestic purchasing power which will continue in 2010. Meanwhile, foreign purchasers in 2008 were down due to the impact from the political situation but signs of foreign consumer interest is improving in the first quarter of 2010 and it is expected foreign purchasing power will pick up.

Unit prices of between 60,000-80,000 baht per square meter are predicted to be the largest growth market. This condominium segment will have locations around 10-15 kilometers away from the Central Business District (CBD). At the same time,the high-end condominium market remains stable as land prices have soared.

"In the first quarter of 2010, the market is quite good with consecutive growth from last year. The market is more active and land plot acquisition is continuing due to strong investment from large developers and new entrants. Similarly, in our neighbors like Singapore and Hong Kong property market is growing very fast and prices rise very highly, partly resulted by interest rates in Singapore and Hong Kong which are so low that consumers need to seek for alternative investments and property is a choice. However, the Hong Kong property market is different from the Thai market as investors are new rich from China which pushes condominium prices higher. Unit prices starting from HK$ 20 million are the most popular now," Mr. Kitisak says.

Mr. Kitisak continues that locations clinging to the mass transits remain a very first choice for condominiums in Bangkok while condominium prices , especially Grade A condominiums, will have higher prices. Presently, selling prices are around 100,000-120,000 baht per square meter on average. These kind of projects will decrease in the future due to rare prime plots and rises in land prices. As a result, Thai consumers and speculators are eyeing smaller-sized condominium units . Meanwhile, larger units are attracting expatriates and long-term investors that expect high rental returns.

Besides CBD and locations clinging to the mass transits, the company estimates there are other interesting locations in 2010, especially locations in tourist destinations like Pattaya, Hua Hin, Phuket and Chiang Mai which have a strong growth potential.