The population in the capital city of Thailand is climbing and apartment for rent in Bangkok is one of the most in demand along with condominium units for sale. There is a new supply of condo waiting to be launched but ratio of mortgages’s LTV or loan to value might decrease soon. This announcement did not stop condo developers though as they are determined to push through with the launch.
The senior manager at the research department of Colliers, Phattarachai Taweewong, said that even after the proposed LTV limitations to be imposed by the Bank of Thailand, condo developers are not fazed. Their plans to launch their new units for fourth quarter will continue as planned.
He added that developers are expecting for more detailed explanation since they are treating the new measure to be simply a guideline. Recommendations are currently being reviewed by the central bank.
Though the announcement of the new LTV rate was imposed on October 4, all condo projects are still offering a rate of 10 per cent when the down payment should be at 20 per cent already.
For the fourth quarter, about 16,000 condo units are to be launched in the city. This number is still the same as the figure released by developers at the beginning of 2018.
The limits on the new LTV will impact new supplies to be introduced to the market in 2019. Based on the market research conducted by Colliers, the third quarter saw a total of 22,579 condo units made available in Greater Bangkok which came from 46 different projects. The total sales will amount to 107.54 billion in Thailand baht.
For this year, the new supply of condo has increased by 20 per cent compared to the same period in 2017. Meanwhile, there is a 165 per cent growth for the second quarter which kind of created a record for being the highest in the last decade.
For the first three quarters of 2018, the economy is giving off a positive vibe but the condo market remains stagnant. There is more activity with apartment for rent in Bangkok which is found to be more affordable than getting a condo unit.