Markets for condos, offices, and retail malls are contracting, while demand for rental factories and warehouses is increasing

[Compass Real Estate Platform] Despite an increase in new unit supply – 33,000 to 38,000 – compared to 21,000 in 2020, according to Nexus Property Marketing Ltd managing director Nalinrat Jaroensuphong, the condominium market in 2021 will continue to decline.

He explained, "This is due to around 20 projects deferring their openings from last year to this year." “We anticipate a total condominium supply of 674,000 units throughout the year.”

New condo developments this year, according to Nalinrat, will focus on smaller units at lower rates to reflect the current economic circumstances and the tendency of buying a property in the outskirts of Bangkok rather than a condo in the city.

“However, if the government opens the country to foreign tourists in the third quarter, the economy should start to revive and condo demand should slowly rise,” he added.

According to Nexus, the majority of condominium projects set to launch this year will have starting costs ranging from Bt1.2 million to Bt2.5 million per unit, with overall sale prices falling by 5% this year compared to 4% in 2020.

Meanwhile, Theerawit Limthongsakul, managing director of Nexus Real Estate Advisory Ltd, stated that demand for office space and retail space has decreased since the initial wave of Covid-19 last year, because many companies still want their staff to work from home to avoid getting the virus.

“Office and commercial space occupancy fell from 94 to 91 percent last year, compared to over 95 percent in the previous 7-8 years before Covid-19,” he stated.

“However, due to the rapid rise of e-commerce, demand for rental factories and warehouses has been expanding for the past 4-5 years,” he stated.

“It is projected that the rental manufacturing and warehouse markets each have 4 million square meters of accessible space. “Rented factories may bring in Bt200 per square meter per month, while rented warehouses may bring in Bt150 per square meter per month,” he added.

Author ៖ Samnang, Editor-in-Chief ៖ Sunnie, Editor-in-Chief / Producer ៖ Nicole

Find a property with the compass, and all overseas stations are online simultaneously ៖ Cambodia丨Laos | Myanmar | Singapore丨Philippines丨Thailand丨UAE