At the beginning of Q2 2020, the condominium market in Bangkok had experienced more negative impact from the COVID-19 pandemic after the city lockdown started in early of April. The market experienced a significant drop in the number of newly launched condominium units which totalled 3,451 units, decreasing by 74% Y-o-Y.
The situation demanded developers to become very cautious when launching new projects as the overall condominium market remain weak with uncertainties looming in the air. A total of 323 units were launched in the downtown area this quarter compared to 3,746 units in Q2 2019 or a decreased of 91% Y-o-Y.
In Q2 2020, there were zero international tourist arrivals to Thailand, the first time in the history of Thailand’s tourism industry, compared to 9.0 million arrivals from the same period last year due to the restriction of international flights to Thailand, effective from 3 April until 30 June 2020.
Hotels that did open had adapted their operations and created new strategies to generate revenue and survive amid the COVID-19 crisis such as work-from-hotel, food delivery services, long-stay packages and staycations for locals and expats.
The total Bangkok office supply increased to 9,145,088 square metres from 9,093,528 square metres in the previous quarter, an increase of 0.6% Q-o-Q and 2.4% Y-o-Y. Seven buildings, all Grade B Non-CBD buildings, were completed in this quarter with combined office space of 134,800 square metres. By the end of 2020, approximately 90,100 square metres of office space from seven under construction projects is expected to enter the market, all of which are Grade B Non-CBD buildings.