Bangkok residential vacancy rate declines to 6.5% in Q2
A total of 21 projects are now fully occupied.
In 2Q23, sentiment in the Bangkok condominium market continued to improve, especially for completed projects. In a report, JLL said while domestic demand remained the primary driver, the tourism market has improved and there has been increased interest in acquiring condominium units, making the rental market particularly intriguing.
The unsold rate for condominiums decreased by 45 bps q-o-q to 4.4%, equivalent to 3,247 available units across the market. Similarly, the report added that the vacancy rate for apartments decreased to 6.5%, with 21 projects now fully occupied. Some expats have proactively shifted to larger units in anticipation of their families’ arrival.
Here’s more from JLL:
In 2Q23, two new condominium projects, Scope Langsuan (158 units) and Tonson One (80 units), were completed, contributing to the increase in Prime condominium stock in the CBA to 73,006 units. No other new projects were launched during this period. Consequently, there are 5,674 units from 19 projects in the pipeline for future development.
The number of apartment units increased to 4,793 following the completion of GM Residence Ekkamai and the refurbishment of The Pentacle. However, Garden View may soon cease operations, with the owner actively seeking to sell the property. While subsequent quarters will see the arrival of renovated The Pentacle 2 units, no new initiatives have been announced at this time.
Rising rents following the influx of expats
In the absence of new construction, capital values have increased in 2Q23, driven by the rising prices of existing inventories. Notably, certain projects in the Sukhumvit area have raised their asking prices by 10% to 20%. As of 2Q23, the market capital value reached THB 132,196 per sqm.
With an influx of expats and foreign residents, rents for buy-to-let condominiums have grown to THB 604 per sqm, per month. However, apartment rents decreased slightly due to higher demand for prime locations being absorbed in the quarter. Hence, apartment rents averaged THB 374 per sqm, per month.
Outlook: Prime market set for a comeback
Over the next 12 months, the completions of four Super Premium, one Premium, and four High-end condominiums will add 2,402 units to the market. This may potentially drive up the unsold inventory to about 4,000 units.
According to the developer’s business strategy announcement, we anticipate several new launches in the Prime market in the coming quarters, notably in the residential component of One Bangkok.
Note: Bangkok Residential refers to Bangkok's high-end and luxury residential market.