BANGKOK BANK SEES GLUT IN HOUSING

Bangkok Bank has warned of a possible oversupply in the low-rise housing market in Greater Bangkok as many developers flee the sluggish condo sector for the segment, according to the Bangkok Post.

Phairach Sakwit, senior vice-president for property development at Bangkok Bank, said there were about 300,000 unsold residential units in Greater Bangkok as of the first half of 2020.

According to the Real Estate Information Center (REIC), the largest amount of unsold residential inventory was in condos (107,504 units), followed by townhouses (90,383 units) and single detached houses (60,325 units).

When combined with semi-detached houses totalling 28,693 units, the total number of low-rise houses was 179,401 units, worth a combined 789 billion baht.

The REIC reported a drop in low-rise housing launches in Greater Bangkok during the first half of 6% to 16,218 units, against a sharp decrease of 58% to only 10,083 units in new condo supply launched in the same period.