ThaiHome Posted August 31, 2009 Report Share Posted August 31, 2009 High-end transfer gap widens Published: 31/08/2009 at 12:00 AM Newspaper section: Business Link The gap between sales and actual transfers of mid-priced to luxury condominiums is widening as buyers are unable to secure financing and speculators are backing away from commitments, according to a study by the listed developer Raimon Land Plc. The company said 2009 had been a challenging year for developers because of the deteriorating economy as well as the glut of units entering the market after a boom in launches in 2006-07. "Although 92% of launched condominiums were taken up, only 69% of completed units have been transferred to date," said the report. Of the 16,939 units completed, 11,547 have been transferred at an average price per square metre that continues to climb due to completions of high-end units. The volume of transfers to foreign buyers fell from 20% in 2008 to 12.9% in the first quarter this year, reflecting a drop in interest due to the global recession, Thailand's political turmoil, a stronger baht and continued foreign ownership restrictions, the report said. Raimon Land said the demand was coming from end-users, a positive sign for buyers, without speculators unrealistically inflating prices. Thai buyers are moving into the market for smaller inner-city condos at slightly higher prices than they would have paid in past years. It found seven condos with 1,185 units were added to completed inner-city supply in the first half, leaving 11,890 units in various stages of development. It expects 2,696 units will come online in the second half and another 4,212 in the first half of next year. After this new supply comes online, the expected slowdown in completions will give the market time to absorb unsold units in completed projects. The research also revealed the market's resilience and growing maturity. While only 447 luxury condominiums were launched in Bangkok during the first half of 2009, off-plan take-up rates were still high at 73% and the average price grew at a stable rate of 4% to 125,910 per sq m. Raimon Land CEO Hubert Viriot said there were clear signs that a modest recovery had begun, which was expected to continue as the year progressed. Link to comment Share on other sites More sharing options...
ozpharlap Posted August 31, 2009 Report Share Posted August 31, 2009 "Although 92% of launched condominiums were taken up, only 69% of completed units have been transferred to date," said the report. Does that mean 23% of sales did not proceed? Link to comment Share on other sites More sharing options...
Faustian Posted September 3, 2009 Report Share Posted September 3, 2009 So the condo market was/is recession proof....and it's been the Thai's who have been buying! Obviously lots of them with lots of money. Link to comment Share on other sites More sharing options...
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