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Asia Property Report

Daily, Bangkok
Up-to-date news and coverage of industry trends and innovations from Asia with an in-depth special focus on real estate hot spots, as well as key interviews with important industry figures.
 

Bangkokians property lists reach towering heights

May 17, 2012
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"Homebuyers said they would not pay higher unit prices if a project needed to charge more to compensate for flood prevention measures.”


Condominiums have attained new heights post the 2011 Bangkok floods.


Since the floods, residential demand has shifted into the condominium sector, reported a survey, under-taken at the 26th House and Condo Fair in March.


Non-flooded locations were reported as the most desirable, according to the Bangkok Post.


Specifically, projects located near to the city’s mass transit systems are in high demand, according to property developers and the Real Estate Information Centre (REIC).


Pre-requisition of location close to mass transit increased from 33 per cent to 47 per cent, the survey said.


Bangkok’s Chatuchak, Lat Phrao and Bang Na districts upheld their ‘sought-after’ status.


Superseding Chatuchak, Bang Na moved into the top ‘sought-after’ position. Chatuchak dropped to fourth choice, according to the survey, while Lat Phrao went up the ranks, from fourth to second position.


Theerathon Tharachai, the director of research and business development at Property Perfect Plc confirmed that Lat Phrao was the top preference for condos at 21 per cent, followed by 18 per cent for the central business district and 13 per cent for upper Sukhumvit Road.


The survey revealed a continued preference for units priced from one to two million baht US$ 31,892 to US$ 63,785.


The majority of those who preferred condo living to single houses were aged between 21-30. Overall, the age bracket of 31-40 opted a preference for single house living.


The House and Condo Fair survey showed that out of 450 respondents residing in Greater Bangkok, 44 per cent desired to buy a condominium unit, while 35 per cent preferred a single house.


Kessara Thanyalakpark, director of Sena Development Plc said: “Single houses remained homebuyer’s top choice over condos, but their popularity was down from the previous year.”


Among consumers who were considering pre-flood purchases, the decision of 60 per cent remained unaffected. Those who decided to postpone their purchases totaled at 17 per cent, while 23 per cent decided not to buy.


According to Mr Tharachai, amongst the interested market, 45 per cent of respondents expressed sole unit interest. He said, only 16 per cent reported that their interest was to escape the prospect of future flooding.


Mr Theerathon said: “The top three measures that homebuyers said they need from property developers are good water drainage, a raised project site to prevent inundation, and better customer care during flooding.


“However, most homebuyers said they would not pay higher unit prices if a project needed to charge more to compensate for flood prevention measures.”


Property developers must consider whether they want lower margins or better absorption rates, he concluded.


Respondents generally expected land and residential prices in the affected flood areas to drop over the next six months.


Locations where a price decline of more than five per cent is expected are Bang Bua Thong, Muang Pathum Thani, Lam Luk Ka-Khlong Luang, Buddha Monthon-Sam Phran, Muang Nonthaburi, Bang Kae, Bang Khen-Sai Mai, and Bang Phlat-Taling Chan.