Effects Of New Condominium Projects In Bangkok City Center
If you will look at an aerial view of Bangkok’s Limpini Park showing the Central Business District in the background, you will be astounded by the number of new condominium developments. Condo prices in the city center are rapidly increasing but it is limited only to the new builds because Thais prefer new buildings than old ones.
After 1989 up to the Asian Financial Crisis of 1997, more than 29,000 condo units were fully finished in downtown Bangkok; however, most of the buildings were not properly designed in terms of layout and specification. Improving the buildings to meet present standards is challenging because of potential disputes among the co-owners.
Condos that were build starting 2002 fared better although the prices are still below the achievable prices for a project with the same size and specifications on a similar location. Prices of condo units at Athenee Residence on Witthayu Road that were completed in 2008 and the Park Chidlom on Chidlom Road that was completed in 2007 have doubled to over 200,000 baht per square meter from the average launch price of 100,000 baht per square meter in 2004.
The low prices of condo units that were built before 1997 could be blamed to their poor design, specification and maintenance but those that were completed in 2002 the issue is age and the preference for newer buildings. There are also a number of different factors that affect price like the availability of land in the city centers for possible redevelopment and the expat residential rent market with rising rents that are pushing up the resale value of the finished units.
In most of the popular condo locations, development sites have become limited resulting to less supply in the area which is good news to old buildings because there is less competition. However, the overall image of the building and its state of deterioration can put off condo buyers.
Condos for sale Pattaya can be a better option in the long run because you are literally investing in a favorable location with more potential for an increase in price. Most of the condo developments in Pattaya are surrounded by a green environment with a good view of the bay.