In Q1 2020, the condominium market in Bangkok continued to weaken along with the unprecedented and unexpected impact of the COVID-19 pandemic. The market experienced a slow sales rate and drop in the number of newly launched condominium units which totalled 6,245 units, a drop of 64% Y-o-Y. This has been the lowest number of newly launched units since Q3 2011 or the lowest in almost a decade.
Many developers had announced that they will not be launching any new condominium projects this year or until the market recovers. Meanwhile, we have seen the temporary closure of sales galleries by developers to relaunch their projects later with adjusted pricing and marketing strategy. We expect to see more development revisions, aggressive discounts in existing projects and some discounts in new projects to survive the escalating competition.
As buyers had been staying at home more often as a precaution to reduce chances of being infected or spreading COVID-19, condominiums’ sales galleries were directly impacted as seen in the significant drop in the number of walk-ins.