After the new wave of the COVID-19 outbreak, the condominium market continued to experience a slow sales rate as the uncertain situation had affected buyer’s confidence considering whether the price of condominium units could still be lowered, or more attractive promotion campaigns would be offered by the developers.
Majority of developers continued to offer discounts in completed projects in areas facing high competition, as they aimed to clear their existing stocks and generate quick revenue upon transfer of the units to increase their cash flow liquidity.
For the whole 2020, the average hotel occupancy rate was 24.0%, decreasing by 54.0 percentage points Y-o-Y, ADR decreased by 26.5% Y-o-Y from THB 3,412 in 2019 to THB 2,507 in 2020 and RevPAR declined by 74.2% Y-o-Y from THB 2,669 to THB 687.
Six new hotel openings and one hotel expansion in Q4 2020, which added 1,273 keys to the Bangkok hotel supply, totaling at 51,098 keys, increasing 3.9% Y-o-Y.
The total Bangkok office supply at the end of Q4 2020 was 9.23 million sq. m., increasing 0.7% Q-o-Q and 2.9% Y-o-Y from the completion of three new office buildings: Bangkok Life Assurance Head Office, Thai Zhong Tower and Ratchada One, with combined office space of 59,600 sq. m., all of which are in the Grade B Non-CBD classification.
From 2021 to the end of 2023, we expect to see a big influx of new supply from 1.11 million sq. m. of office space under construction.