Bangkok Condominium Market Remains Healthy

The supply of condominiums in the market totaled 43,940 units in the first quarter of 2006. The number of freehold condominiums increased by 1,062 units with eight new condominium projects completed while the leasehold total remained the same as in the fourth quarter of 2005.

Bangkok, Thailand (PRWEB) July 23, 2006 -– The supply of condominiums in the market totaled 43,940 units in the first quarter of 2006. The number of freehold condominiums increased by 1,062 units with eight new condominium projects completed while the leasehold total remained the same as in the fourth quarter of 2005.

The condominium vacancy rate increased slightly among both grade A and grade B condominiums by 2.4% and 1.3% respectively, with the occupancy rate declining slightly from 90.5% in the fourth quarter of 2005 to 87.9% in this quarter. This was due to the number of new units completed where owners were still decorating units.

The demand for condominiums either for investment or own use continued to increase in the Bangkok CBD ( http://www.cbre.co.th/cbre_thailand/NewResidentialProjects.aspx?residentialsales=yes&WT.mc_id=50006 ) and peripheral areas such as Ratchadapisek Road, Paholyothin and the outer Sukhumvit Road. As a result of the increasing demand, the changing lifestyles among the new generation, rising oil prices and construction costs, the prices of condominiums have been rapidly increasing in Bangkok by 20-50% over the last three years. The top five nationalities with regard to foreign investment in the sector are British, American, Singaporean, French and Hong Kong Chinese.

SUPPLY

The total condominium stock significantly increased to 43,940 units in the first quarter of 2006, comprising 41,964 freehold condominium units and 1,976 leasehold condominium units. Eight freehold projects were completed during this quarter, with a total of 1,062 units, in Sathorn, Silom and the Sukhumvit area. These included three low-rise projects developed by Sansiri: Sathorn Plus by the Garden on the main Yenakard Road, with 70 units; Sathorn Plus on the Pond in the same area, with 77 units; and The Lanai Sathorn on Yenakard Road Soi II, with 34 units. The other developments were: Silom Grand Terrace on Soi Saladaeng on Silom Road, developed by Metro Star Property and with 240 units; Supalai Oriental Place on Suan Plu on Sathorn Road, being developed by Supalai and with 300 units; and another to projects from Noble Development called Noble 09 Ruamrudee on Ruamrudee Road with 39 units, and Noble Ora on Sukhumvit Soi 55 with 223 units. Another project that was completed was Avenue 61 located on Sukhumvit Soi 61 which was developed by the new developer, Bangkok Living Development, and offered 79 units.

The total future supply consists of 75 projects, with 15,400 units. These are expected to be completed within the next three years. Eight new projects, with 1,751 units, were launched in this quarter; Noble Ambience Sarasin, a low-rise building on Sarasin Road; Noble Ambience Ruamrudee, a high-rise building on Ruamrudee Soi III; VOGUE@Siam, a high-rise building on Petchaburi Road; One Siam, a low-rise building on Rama I; The Clover Thonglor, consisting of five low-rise buildings on Sukhumvit Soi 55/18; Emporio Place, two high-rise condominiums plus one home/office building on Sukhumvit Soi 24; One Thonglor Station, a low-rise building on Sukhumvit Soi 40; and One Sukhumvit 67, a low-rise building on Sukhumvit Soi 67 The majority of the new developments are still located in the Sukhumvit area (37.4%), Riverside/Rama III (28.9%), Silom/Sathorn (16.8%), Pathumwan (11.6%) and Central Lumpini (5.3%). The majority of new units are studio anc one-bedroom units aimed at the mid market.

Metro Star Property is planning to launch another one project, Suan Plu Grand Terrace in the second quarter of this year and Sathorn Grand Terrace at the end of this year. Both projects are located in the Sathorn area. Noble development also launched Noble Remix, consisting of a high-rise condominium, mini offices and retail units at the corner of Sukhumvit Soi 36, in the second quarter. Recap Investment, a Singaporean developer, launched the Millennium Residence, four high-rise condominiums, with easy access to Sukhumvit Soi 16, 18 and 20 in the second quarter.

DEMAND

The number of occupied freehold condominium units totaled 36,833 units (87.9% of the condominium stock), an increase of 352 units from the previous quarter. The number of the occupied freehold condominiums increased by approximately 16,399 units, from 20,921 recorded in the previous quarter.

Over the past five years, the number of occupied freehold condominiums has increased by approximately 16,399 units, from 20,921 units at the end of 2000 to 36,883 units at the end of first quarter of 2006, a rise of approximately 76.3%. Occupancy has also been increasing steadily by 1% quarter-on-quarter and 9.5% year-on-year. The overall vacancy rate in this quarter increased by 2.4% for grade A condominiums and 1.3% for grade B condominiums, when compared with the last quarter. This was due to the completion of new units.

PRICE

The average price for grade A completed condominiums increased in the first quarter of 2006 in all areas but especially in Sukhumvit. The Sukhumvit area had an average price increase of 14% while Silom/Sathorn and Central Lumpini increased by 5%.

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 1000 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2005 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide.

CB Richard Ellis established an office in Bangkok in 1988 and in Phuket in 2004. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering a full range of services including sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company's website at http://cbrethailand.inetasiapreview.com/cbrecontent/homepage.htm?WT.mc_id=50006

###