In Q4 2017, we started to witness signs of recovery in the overall condominium market with the downtown area performing well due to healthy demand while growth in the midtown/suburban area slowly regained pace.
A total of 4,674 units were launched in the downtown area compared to 4,017 units launched last quarter. The overall number of newly launched units in the downtown area for the year 2017 was 12,544 units, exceeding the 8,321 units launched in 2016 by 51% Y-o-Y.
Increasing land prices and the scarcity of freehold land in prime downtown locations have forced developers to find and explore new unexploited locations and land plots in-between sois and roads for new developments. Two new projects, OKA HAUS Sukhumvit 36 (1,178 units) and Ideo Mobi Rama IV (486 units), were launched on Rama IV road in this quarter, following an absence of new developments in the area for many years. Although market sentiment has improved, we believe that buyers in the downtown market remained selective and cautious, resulting in a mixed sales performance.