<article>Long drawn political turmoil and the accompanying economic downturn has had a negative impact on Thailand&#8217;s real estate sector. This year, new projects have come down significantly, especially in the residential real estate space.</article>

Long drawn political turmoil and the accompanying economic downturn has had a negative impact on Thailand&#8217;s real estate sector. This year, new projects have come down significantly, especially in the residential real estate space.
The new project launch announcements in the housing and condominium category have gone down by 15%  in the first 10 months of the current year (compared to the same period, last year). This was revealed in the findings of a survey conducted by the Real Estate Information Center (REIC),Thailand.
REIC’s director-general Samma Kitsin said that around 350 housing and condominium projects with 94,200 units were launched in Bangkok and its vicinity from January to October this year, down from 394 projects with 110,000 units in the same period in 2013.
Of the total 394 projects, condominiums accounted for 132 projects, shrinking by 25% from the 178 new projects last year. The main reason for the negative growth has been Thailand&#8217;s political unrest, which has had buyers’ postponing their decision on condominium purchases.
He said that around 60% of condominium developments are small-sized projects because the developers do not have to seek the approval of Environment Impact Assessment (EIA), making it convenient for them to develop the condominium category in housing.
However, the condominium projects are expected to pick up pace in the last two months of this year. According to REIC forecast, the numbers could reach 65,000 units for 2014.
For housing projects, developers launched around 37,900 units in the first ten months, up 8% from 35,100 units from the same period last year. “This reflects high demand for housing projects. I think the housing supply will expand around 8%-9% this year, as against the lower supply of condominiums,” he added.
According to the survey, the most popular areas for developing housing projects are Samut Prakarn province especially in Bangna-Trat road, which is already home to 8,500 new units, this year; followed by 6,400 units in Bang Yai, Bang Bua Thong and Sai Noi districts; and 5,000 units in Lamlukka and Klong Luang districts.
Meanwhile, the golden areas for developing condominiums are where the sky train routes are being developed. The area in Thonburi has the highest number with 11,700 new units being developed there during the January-October period in 2014, followed by 7,250 units in Nonthaburi province and 5,350 units in Huakwang-Chatuchak and Dindaeng districts.
However, Samma said that the property market should grow by 10% in 2015.  “We see positive signs from the economic recovery. For example the consumer confidence is coming back and the interest rate is expected to stay constant till the middle of next year.This is helping the growth in demand,&#8221; he added.
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Thailand's residential real estate shrinks 15%

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Thailand's residential real estate shrinks 15%

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