Earthquake Shakes Confidence in Bangkok's Condo Market

The recent magnitude 8.2 earthquake from Myanmar on March 28th has significantly impacted Bangkok's 450 billion baht condominium market. High-rise building safety concerns are now at the forefront of potential buyers' minds, leading to anticipated delays in purchases and a slowdown in sales, especially for high-rise developments.

Industry Experts Weigh In

Phattarachai Taweewong, director of Research and Communication at Colliers International Thailand, labels the earthquake as a "significant negative factor" for the market. With a substantial unsold supply, condominium sales in the first half of the year are expected to fall short of projections as buyers seek assurances on building safety and earthquake resilience.

Call to Action for Market Confidence

Experts are urging both the government and developers to take swift action to restore confidence. Suggestions include stricter building codes, financial support for structural enhancements, and clear communication about earthquake-resistant construction practices. Prasert Taedullayasathit, president of the Thai Condominium Association, highlights that while newer buildings are designed to withstand seismic activity, the event underscores the need for thorough inspections and maintenance.

Future Considerations for Buyers

Surachet Kongcheep, Head of Research and Consultancy at Cushman & Wakefield Thailand, points out that earthquake resilience will now be a critical factor in purchasing decisions. The importance of disaster insurance, especially for older, more vulnerable buildings, is also emphasized. The industry faces the challenge of addressing immediate sales concerns while ensuring the long-term safety and appeal of Bangkok's high-rise condominiums.