For housing in Bangkok and its vicinity, those who want to buy a house should be able to smile this year due to many house and condominium promotions.

According to information from the Government Housing Bank (GHB), there are nearly 1,600 residential projects in Bangkok and its vicinity which have not been sold up.

500,000 units for sale in Bangkok

Mr. Wichai Wiratkaphan, Acting Director of Real Estate Information Center, GHB, said the survey on the supply of and demand for residential projects that are being sold during the second half of 2018 in Bangkok and its vicinity found that there were 1,597 projects, almost 500,000 units, under sale, an increase of 7.7 percent from the same period in 2017.

They are mostly in a group of housing and condominium projects.

This reflects that the real estate business in 2018 has obviously recovered thanks to the government’s economic stimulus measures, competition in housing loans of financial institutions and supporting factors from economic growth.

The ownerships of over 360,000 units, worth over eight billion baht, were transferred throughout the country in 2018.

However, the outlook of the real estate business across the country in 2019 is likely to shrink slightly to wait for the new government’s economic policy and clarity of the economic condition in the country.

Demand for housing has decreased

This is a sign that the demand for housing has decreased. The demand for residential projects, both houses and condominiums, launched during the past 1-2 years, under sale and construction is still relatively high.

Therefore, real estate entrepreneurs need to focus on the existing supply of and demand for the housing market before adjusting their business plan. But on the other hand, it is considered good for…

Condominium developers are expected to face greater challenge in 2019 due to increasing economic uncertainty as well as specific factors affecting condominium market.

For example, the demand for condo has been somewhat absorbed and there are a number of remaining unsold units covering a wide range of prices amid the imbalance between purchasing power and selling price.

Moreover, new regulatory and legal requirements have become effective. These factors have prompted business operators to attach greater importance on their business plan adjustments.             

The findings show that more than 77 percent of respondents, who are interested in buying a condo between 2019-2020, said they want to purchase a condo as their residence.

Real demand for condominiums still strong

The real demand for condominiums still exists, as reflected by a survey to determine the demand for residential properties in Bangkok and suburbs by KResearch.

As property developers are now stepping up their marketing promotions to attract homebuyers, this may present a golden opportunity for consumers who are planning to buy a condo. They now have a variety of choices consisting of both old and new projects, covering a wide range of prices, to choose from.  

At any rate, since the purchase of residential property is considered a long-term financial liability, the buyers must take into account their debt service ability in the long run together with additional expenses that may incur and affect their ability to pay installments.                  

Investors more cautious

Investors planning to purchase a condo for renting out may have to be more cautious due to various factors.

For example, the initial cost of investment becomes more expensive because of the Bank of…