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CBRE publishes Thai property outlook for 2012

CBRE publishes Thai property outlook for 2012 - Bangkok Property - residential market - real estate - retial - CBRE

The Bangkok property market has seen a significant recovery from the effects of the floods, according to CBRE Thailand a leading international real estate service provider. Even the worst hit areas such as low rise housing, retail and industrial in areas that were flooded have seen resumed activity. In the flooded areas, all retail centres have reopened, there were new housing sales and the majority of factories have reopened or are in the process of reopening.

Residential Market:

In the single detached house and townhouse market, while developers are concentrating most new launches in areas that were not flooded, CBRE is also seeing new sales resuming in areas that were flooded, particularly for the low to middle-end market, but the high-end housing market is slowly recovering.

“We believe the desire of purchasers to own a house or townhouse close to future mass transit stations in the suburbs have continued as fears of a repeat flood are now alleviated. Demand for single-detached houses and townhouses will increase but this will be driven by affordability and the attractiveness of the product and location,” said Aliwassa Pathnadabutr, managing director of CBRE Thailand.

The prices of condominiums are rising due to higher land costs and construction costs. CBRE believes that for a fixed budget, the majority of the family market will consider townhouses in a good location several kilometres away from a mass transit station in the suburb rather than a one-bedroom condominium in the city which is at a similar price point. Nevertheless, there will be continued demand for small condominiums from singles, couples and weekday occupation by children attending central city schools and second home use.

LPN, the leading entry-level condominium developer has branched out into townhouse developments with two new projects including Lumpini Town Residence which offers 190 – 200 sq.m. three-storey townhouses on an 88 – 188 sq.m. plot priced at THB8.79 million (US$280,070) and only 200 metres from the MRT Ladprao station. LPN has also launched Lumpini Town Place offering three-storey townhouses on 80 – 100 sq.m. plots at Ratchayothin-Sena, located 3.6 kilometres from the nearest MRT station.

Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.