Transfers of high-rise condos set to plunge

Transfers of high-rise condos in Greater Bangkok are expected to decline by 50% in the total condo transfers in the region or drop by 1.8% to 85,000 in 2024 in the aftermath of the earthquake, according to research and securities firms.

- KANANA KATHARANGSIPORN

Kasikorn Securities analysed the impact of last Friday’s earthquake on the residential market to reassess Bangkok, with the base case expecting the value of ownership transfers for high-rise condo projects to drop by 50% in 2024 compared to 2023.

The securities firm forecasts the net profit of residential developers will decrease by 15% this year compared with current estimates. It expects listed developers, including L.P.N. Development, Origin Property and Prakasa Holding, to be significantly affected.

In the worst-case scenario, no condo ownership transfers are expected for high-rise projects, with net profit for residential developers potentially falling by as much as 21% compared with the 2023 profit forecast.

The March 28 earthquake, which was unprecedented in its severity, has led the firm to expect ongoing uncertainty in the residential sector following the event.