Thailand's condo market to see only small growth

Thailand's condo market to see only small growth
Thai construction worker are pictured at a building site in Bangkok on October 03, 2008.

The Condominium market this year is expected to see only a slight growth this year over last year with launches accounting for only 80,000 units, up 2.5 per cent over 2014, while being lower than in 2013 when new projects launched 85,000 units.

However, the condominium market still accounts for 50 per cent of total residential market volume in Bangkok and its suburbs, Opas Sripayak, managing director of Thailand's leading condominium developer LPN Development Plc, said.

He added that the company is cautious about buying land, as domestic demand for high-rise buildings has weakened and banks are restricting lending to home buyers.

Several property developers have changed strategies to focus on single-detached houses and town homes after bookings for condominiums slowed in recent months, he said.

"It [the market for condos] is clearly on a downtrend because most developers are trying to reduce building condominiums, especially those that cost less than Bt3 million per unit," Opas said.

LPN, the market leader in medium-to-low-priced condominiums, missed its revenue target last year, hit by weak demand from consumers after the months-long political unrest in Thailand.

Rising household debt is slowing condo demand in Thailand, and banks are getting cautious about giving loans to home-buyers, Opas said.

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