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Thai condo launches set to drop 30%

Bangkok Post
Thai condo launches set to drop 30% - Thailand - Business - real estate - condo

New condominium project launches in the first half of this year may decrease by 30% from the fourth quarter of 2008 as developers adjust both supply and prices to avoid excess supply, according to the real estate agency Knight Frank Chartered (Thailand) Co.

Managing director Phanom Kanjanathiemthao said that new condominiums launched in the fourth quarter of 2008 totalled 2,615 units - down 55% from 5,778 in the first quarter of last year and by 28% from 3,612 units in the third quarter.

Total new condominium supply in 2008 stood at 16,918 units, or a drop of 18% from 20,744 units in 2007.

Sales rates of newly launched projects slowed notably to only 42% in the fourth quarter, from 56% in the third quarter.

Knight Frank also found that last year's prices reflected a rational adjustment of the Bangkok market with average selling price per square metre of newly launched projects up slightly in the fourth quarter.

The average selling price in the central business district (CBD) increased to 122,000 baht per sq m, from 118,500 baht, and in Sukhumvit to 119,900 baht from 114,200 baht.


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