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Townhouses trump condos as hot trend
By admin | July 3, 2009
Townhouses will lead Bangkok’s new residential supply this year as they best fit current purchasing power as an alternative to condominiums, says Samma Kitsin, director-general of the Real Estate Information Center (REIC).
“Due to the sluggish economy, developers have shifted to townhouses as they expect more real demand than from condominiums. One-third of condo purchases are for investment or speculation,” he said.
Developers also believe the condominium market has almost reached maturity, with a glut of units recently completed.
Mr Samma said low-rise development (townhouses or single houses) was still the first choice for the general public,but condominiums had played a larger role the past few years due to rocketing oil prices, as people sought to live closer to their workplaces.
Townhouses are also favoured in a weak economy over single houses.
After freezing townhouse development since the 1997 financial crisis, MK Real Estate Plc plans to resume building them by the third quarter.
The prospective blossoming oftownhouses in Bangkok can be seen by the number of land allotment permits during the first quarter.
According to the Lands Department,there were 22 permits in the quarter for 3,678 units. Of the total,66% were townhouses (2,429 units), followed by single houses (760 or 20.7%), land plots (215 or 5.8%), duplex houses (180 or 4.9%) and buildings or shophouses with 94(2.6%).
The 22 permits were held by 18 different developers, including Preuksa Real Estate, Land & Houses, Sansiri and Noble Development with two each.
From the figures, Mr Samma forecasts that townhouses will dominate Bangkok’s residential market from the second half of 2009 until the first half of 2010.
He said many new transport networks such as the outer ring road and expressways opened fresh locations for townhouses. Lower fuel prices, down 35% from a peak in mid-2008, mean travel cost is less of a deterrent for buyers.
“New roads will trigger medium- to lower-priced townhouses while [locations near] BTS and MRT stations will be for high-priced townhouses,” he said.
Land allotment permits from the first quarter suggest the hottest locations were Bang Khun Thien with 442 units from a local developer, Praves with 408 units from Noble, Nong Khaem with 368 units from PS and a local developer, Don Mueang with 365 units from PS and a local developer, and Min Buri with 351 units from two local developers.
http://www.bangkokpost.com/business/economics/18932/townhouses-trump-condos-as-hot-trend
Townhouses trump condos as hot trend
Source - Bangkok Post
June 22, 2009
By KANANA KATHARANGSIPORN
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