The study revealed that the flooding has had a big impact on new constructions in Bangkok, as developers have been unable to secure necessary building supplies throughout the crisis, leading to a postponement of many construction projects. On the other hand, Aqvarivs Property Solutions have predicted a quick recovery for Bangkok property markets for 2012, due to reconstruction work and an expected increase in demand for housing that is not at risk of flooding.
In October, when the flood crisis first hit Bangkok and supplies of building materials became difficult to obtain, just 22 new residence projects were launched, encompassing 3,087 units in total. However, the impact of the flooding really took hold in the month of November, once supplies to the capital had become severely restricted. In November, there were a total of just 2 new condominium projects and 2 new housing projects launched, comprising a total of just 1,700 units.
What this means is that for the year 2011 as a whole, new construction in the city have experienced a significant decline on the previous year. In total, Aqvarivs Property Solutions found that construction began on a total of 71,727 new units in Bangkok (down 26% from 2010), valued at 215 billion Thai Baht (down 13% on 2010).
Aqvarivs Property Solutions also surveyed the property damage attributed to the flooding, both in Bangkok and six surrounding provinces that were affected. Altogether, Aqvarivs Property Solutions estimated that around 1.17 million housing units, including both housing developments and non-housing developments, sustained damages due to the flooding.
In a statement released by Aqvarivs Property Solutions, the company said that the short term impact of the flooding would be fairly significant, as the buying power of Thai residents would initially be restricted due to problems of less income as a result of the flooding, and a lack of confidence in the local market.
However, the company was quick to point out that from their studies, prospects for Bangkok property markets were good, especially with regards to the condominium sector. They noted that neither the demand for property nor prices were expected to be impacted in the aftermath of the flooding, while the construction of new projects which were delayed by the flood situation would once again begin in earnest in the New Year.
Aqvarivs Property Solutions is a leading property development and management company based in Bangkok, Thailand. They own and operate a number of luxury housing developments and condominiums in Bangkok and its surrounding provinces. For more information about Aqvarivs Property Solutions, please visit their website http://blog.aquariusestate.com/