Bangkok’s Properties Shift from High to Low ?

Bangkok’s Properties ( condos vs single family dwellings)?

Thailand’s busiest commercial and industrial hub has been experiencing plenty of Asia’s progressive economic trends. In recent years, Bangkok has become a magnet for foreign investors and locals alike as its growing GDP has been very encouraging. More and more international investors have decided to touch base in the city and people have been settling in to grab employment opportunities presented by this boom. This in turn has led to a rapid incline in land and housing development in Bangkok itself and its suburbs, particularly in the years prior to 2010. An estimated 66,000 condominium units were launched then to cater to the growing population and the increased interest of developers looking to take advantage of Bangkok’s success.

A slower property trend?

The beginning of 2011 saw a slower trend in Bangkok’s properties and sales. It seemed everyone who could possibly buy a unit has already bought one, yet with the worlds foreigners decline in their economies, we will see a new round. Developers have turned from launching to consolidating their units, lowering the supply of new condominiums by a reported ten percent this year.While the spotlight on high-rise housing has dimmed, it has grown brighter for low-rise residential housing. According to a report conducted by Thailand’s Real Estate Information Center (REIC), the total number of low-rise units in Bangkok and the surrounding areas has been steadily going up and will continue to do so. These properties for sale

In only the first half of this year, some 27,400 land allotment permits for low-rise housing have already been recorded, with the exemption of vacant lots. This is a leap from the first half of 2010’s total of 19,800. As reported by the “Bangkok Post,” the entire 2010’s count for low-rise units was 51,400, which was a jump from 2009’s 42,600 low-rise units. It has been predicted that the rise in the number of low-rise units this year might equal or even possibly exceed the boom of low-rise units the city saw in 2005.

New High Rises are down -good for investors

As for high-rise condo units in Bangkok and its suburbs, the first quarter (Q1) of 2011 witnessed a drop in new high-rise construction permits to only 260 buildings with 1.51 million square miles. This was from 302 buildings containing 1.59 square miles in 2010’s last quarter (Q4). Additionally, 2010’s Q1 showed a record of 268 buildings containing 1.64 million square miles, but numbers have been going down since.

Low rise properties sales up

This shift from high-rise to low-rise housing units may be attributed to what is seen by many as an some oversupply of high-rise units in Bangkok and the surrounding areas. Predictions of a decline in newly launched high-rise units for this year have thus far been proven correct. With the enthusiastic launching of new units in 2010, the real estate market for this particular area has cooled down somewhat, allowing the market for low-rise housing to take its place instead. Bangkok continues to cope well with the bubble threatening to burst over its high-rise real estate market as experts speculate on the possibilities. In the meantime if all continues to go as it has been going, takers on low-rise housing may well continue to enjoy the current advantages of the market until the end of the year.