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Supply also fell in Q3 2011 compared to the previous quarter although is expected to pick up in Q4 2011.
newly lAunCHed CondomInIum unITS duRInG THe yeAR 2010 Q3 2011 by QuARTeR
New launches for Q3 2011 were dramatically down compared with the previous quarter by around 74%. Approximately 3,000 units were launched in Q3 compared to around 11,600 in Q2 2011 and was the lowest number recorded in the past three years. Uncertainty regarding government incentives policy has had a direct
impact on buyers confidence and also developers have put back launching new projects to a time when sentiment will be more favourable based on greater clarity regarding government plans.
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In Q3 2011, more than 88% of total units launched are located in urban the outer City east area was second, with more than 600 units. Bangkok area. Within urban Bangkok, the northern Fringe has shown the measures supporting mid to high-income earners has meant a strong highest numbers with approximately 1,600 units or 52% from the total. performance in urban Bangkok in comparison to the suburbs.
Source: department of Land, Colliers International thailand research remark: the number of units does not include projects from the national Housing Authority
Approximately 4,000 new condominium units were completed and number of condominium units under construction and scheduled to be registered at the department of Land in Q3 2011 and the total number for completed in 2011 is the highest since the global financial crisis in 1997. the whole of Bangkok was approximately 315,100 units, with more than 25,700 units scheduled to be completed in the last quarter of 2011. the
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more than 204,200 condominium units, around 65% of the total, are compared to the City area. the outer City areas are appearing on the located in the Suburban Bangkok area. Within the urban Bangkok area, radar screen due to the extension of the BtS across the Chao Phra Ya the northern Fringe contains the most units due to its proximity to the river and further along Sukhumvit road and this is set to continue. city centre, mass transit connections and relatively lower land prices
Source: Colliers International Thailand Research remark: Supply does not included units in Suburban Bangkok
Approximately 25,700 units are scheduled to be completed during the within 2011, followed by the City area with around 5,190 units. It is rest of 2011. the northern Fringe area continues to be the main player expected that the northern Fringe will continue to dominate supply for in urban Bangkok, with nearly 6,700 units scheduled to be completed the early part of the decade in urban Bangkok.
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Bangkok Condominium market rePort | Q3 2011 TAKe-up AveRAGe SAleS pRopoRTIon of newly lAunCHed unITS In Q3 2011
the average take up rate in Bangkok for newly launched units in Q3 2011 bears little indication to overall long term market sentiment. Buyers are is approximately 40%. However due to the limited amount of launches in simply waiting for clarity regarding proposed incentive programmes. Q3 2011 and the uncertainty around government incentives, the figure
Worth Supplies Co., Ltd. launched their first project on Sukhumvit soi 23. sizes starting from 35 square metres to around 79.5 square metres and rende Sukhumvit 23 contains a total of 50 units in the City area and sold the location is not far from BtS Asoke station and mrt Sukhumvit out in two days. the project comprises of 1 2 bedroom units with unit station.
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For the first three quarters of 2011, the average selling price of newly approximately tHB 105,000 per sq m which was higher than other areas launched projects not more than 200 metres from BtS / mrt lines was by 13% - 65%.
THe AveRAGe TAKe-up RATe of newly lAunCHed pRojeCTS by pRoxImITy To exISTInG mASS TRAnSIT lIneS, duRInG Q1 - Q3 2011
the take-up rate of projects more than 1,000 metres from the BtS / because the selling price was similar to projects 200 500 metres from mrt systems was the highest, at around 43%. Projects located 500 mass transit system. the difference of a couple of hundred metres can 1,000 metres from the mass transit system had the lowest take-up rate, have a huge impact on the desirability of a condominium project.
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Source: Bank of Thailand and Colliers International Thailand Research note: excludes negligible amounts of financing from other sources. Percentage change is comparable quarter-on-quarter.
the growth rate of housing loans increased approximately 2.3% in Q2 rate in the first two years for unit prices of less than 3 million baht, which 2011 compared with the first quarter of 2011. this was because of the took effect in may 2011 and lasted for around two months. previous governments policy for first-home buyers with 0% interest
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The condominium market may face further headwinds if further alterations are made to government policy and global financial concerns It is likely that current incentives will continue to apply to existing and deepen into a second recession. future supply that can be completed by the end of 2012 in order for first
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AppendIx
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outer City (west): This section starts from the extension of the BTS route at Taksin Station to Bang Wa station, which includes the area from krung thonburi road to ratchaphruek road near Petchakasem intersection.
This section covers the BTS route starting from Ratchathewi Station to mo Chit Station to the north and the mrt route starting from Petchaburi SUBURBAN BANGKOK station to Bangsue station to the north. these are the environs outside the areas already mentioned. expansion of the mass transit system is the main determinant for increasing future Southern fringe: supply in a particular area. the expansion from on nut to Samut Prakarn this section covers narathiwad ratchanakarin road, Chan road, is scheduled to be completed in 2011. the expansion of the BtS will Sathupradit road, Charoenkrung road and rama III road along the Chao benefit directly the surrounding condominiums, as it will considerably Phraya river. reduce transportation costs and time. this will encourage the development of new condominiums in this area. Suburban Bangkok represents the biggest area and for the purposes of this report and includes Bangkok eastern fringe: citys old town (koh rattanakosin area and boundary area). this location this section covers the BtS route starting from thong Lor Station to on has comprehensive town planning controls restricting building height, so nut Station to the east, rama IV road and Petchaburi road. there are no condominium projects in the area.
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Bangkok Condominium market rePort | Q3 2011 CollIeRS InTeRnATIonAl THAIlAnd mAnAGemenT TeAm
ProJeCt SALeS & mArketIng monchai orawongpaisan | Senior manager reSIdentIAL SALeS & LeASIng Sunate Lawskul | Senior manager oFFICe & IndUStrIAL SerVICeS narumon rodsiravoraphat | Senior manager retAIL SerVICeS Asharawan Wachananont | Senior manager AdVISorY SerVICeS | HoSPItALItY Jean marc garret | director AdVISorY SerVICeS napatr tienchutima | Associate director reAL eStAte mAnAgement SerVICeS Bandid Chayintu | Associate director InVeStment SerVICeS nukarn Suwatikul | Associate director Wasan rattanakijjanukul | Senior manager reSeArCH tony Picon | Associate director Surachet kongcheep | Senior manager VALUAtIon & AdVISorY SerVICeS nicholas Brown | Associate director Phachsanun Phormthananunta | Associate director Santipong kreemaha | Senior manager Wanida Suksuwan | manager PAttAYA oFFICe mark Bowling | Senior Sales manager Supannee Starojitski | Senior Business development manager / office manager
CoLLierS internationaL thaiLand: Bangkok Office 17/F Ploenchit Center, 2 Sukhumvit road, klongtoey, Bangkok 10110 Thailand Tel +662 656 7000 fAx +662 656 7111 emAIl info.th@colliers.com Pattaya Office 519/4-5, Pattaya Second road (opposite Central Festival Pattaya Beach), nongprue, Banglamung, Chonburi 20150 Tel +6638 427 771 fAx +6638 427 772 emAIl info.pattaya@colliers.com
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