The Bangkok real estate market showed mixed results in the second quarter of 2024, with various sectors experiencing distinct trends.
Residential Market Overview
The condominium sector remained stable, with over 35,000 units expected to complete by year-end. New launches in downtown and suburban areas reflected similar activity to the previous quarter. In downtown, 779 new units were introduced, a significant increase from last year. The sales of existing unsold units rose slightly to 92.4%. However, the overall economic climate and strict lending criteria impacted the residential market negatively, resulting in a 4.1% quarterly decline in consumer confidence.
Office Sector Dynamics
The office market faced challenges as occupancy rates fell to 81.5%, down 0.9 percentage points from the previous quarter. Despite this, rental prices for Grade A+ offices increased by 0.5%. The rise in rental rates was attributed to higher commitment levels in newly completed buildings. Conversely, Grade A CBD rents saw a slight decrease.
Retail Sector Performance
Bangkok’s retail sector slowed down due to intensified competition and cautious consumer behavior. The Consumer Confidence Index dropped to 58.9 in June, marking four consecutive months of decline, the lowest since September 2023.
Hotel Industry Insights
Hotel performance declined across all key metrics compared to the previous quarter, largely due to entering the traditional low season. However, both Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) exceeded levels from Q2 2019 by approximately 20%.
Industrial & Logistics Growth
The industrial market thrived amid rising demand for land and ready-built factories, driven by relocations and company expansions. This sector continues to show positive momentum.
Economic Context
Thailand’s GDP grew by 2.3% year-on-year in Q2 2024, an improvement from the previous quarter’s growth of 1.6%. This economic growth reflects a gradual recovery despite challenges faced by other sectors.
Overall, while certain areas of Bangkok’s real estate market demonstrate resilience, others are grappling with economic pressures and changing consumer behaviors as of Q2 2024
