Plus Property Co. think it's not in a bubble... then again would they say any different
-------------------------
No condo bubble' for now

Published: 29/04/2015 at 08:56 AM

Newspaper section: Business

The condominium supply near skytrain stations on Phaya Thai and Phahon Yothin roads is safe from oversupply and speculation, as 70% of existing units are occupied by their owners, says consultant Plus Property Co.

Managing director Poomipak Julmanichoti yesterday said buyers of condos located from Ratchathewi to Saphan Khwai stations were from extended families in the area, most of them wealthy.

"Condo supply newly launched in this location was sold out in a short period, but very few of them were offered for resale, as most buyers were real demand with a handful of speculators or investors," he said.

According to the company's database, the average occupancy rate of condo projects in the area is 82%, higher than the 79% in more popular locations such as Phloenchit and lower Sukhumvit.

Of the occupied units along Phaya Thai and Phahon Yothin, just 12% are occupied by renting tenants.

"The occupancy rate can tell whether a condo bubble or oversupply exists," Mr Poomipak said. "The more vacant units, the higher the chance of a bubble or oversupply."

Plus Property parent Sansiri Plc plans to launch a new condo project in the area during this quarter.

The Monument Sanampao, worth 1.4 billion baht, will sit next door to Phyathai 2 Hospital on Phahon Yothin Road.

Despite a low number of condo unit resales, the average resale price in the Phaya Thai-Phahon Yothin area has soared by 42% from the buying price to 150,000 baht a square metre.

The price figures are from a survey of 12 condo projects where 4,048 units have been launched since 2009.

Mr Poomipak said the price of new condo supply in the area would be about 180,000 baht per sq m this year, up from 160,000 baht last year.

During the first three months of this year, Plus Property recorded 300 million baht in revenue.

Of that, 55% came from property management and 45% from condo resales.

The marker has two tiers.

One for new sales, and virtually nothing for 2nd hand other than a few choice areas of the main metropolitan areas.

Thus, outside these choice areas, everything is overvalued because it can't be resold.