Bangkok's oversupply's problem could aggravate the fear of the earthquake

(Bloomberg) – A condom glut in Bangkok intends to worsen after a deadly earthquake in neighboring Myanmar has damaged thousands of skyscrapers in the Thai capital, with prospective buyers. A Condom glut in Bangkok will worsen after a deadly earthquake in neighboring Myanmar has damaged thousands of skyscrapers in the Thai capital, which has aroused prospective buyers. (Representative photo) (x) The 7.7 earthquake, which killed more than 2700 people in Myanmar, led to the collapse of an office tower under the construction in Bangkok. Authorities also reported different damages to approximately 13,000 buildings, resulting in mass extensions and safety controls. The earthquake, the strongest that hit Myanmar in a century, has the confidence of prospective home buyers, especially those who weigh condoms, according to the real estate consultants, including Colliers Thailand. This will harm sales in the short term and exacerbate an oversupply in the Segment in Bangkok and its suburbs, they said. “The earthquake presents a serious challenge for Bangkok’s condominium sector, especially as the market has already been taxed by a highly unsold stock,” says Phattarachai Tawewong, the direct director of research and communications at Colliers Thailand. Property developers in the Greater Bangkok area were saddled with about 235,000 unsold housing units at the end of last year, most since the 2018 data dating from 2018. According to the Thai Condominium Association, sales fell by 37% to about 53,000 units. “We’ve seen some apartment buyers temporarily interrupt their search,” says Pierre Lung, sales director of Real Estate Platform Propertyscout. A number of buyers are now more hesitant when it comes to high buildings, especially new projects. ‘Thailand’s real estate sector was hit hard during the Covid pandemic, and a series of government incentives and tax interruptions to support the sector in the second largest economy in Southeast Asia did not revive its fate. Last month, Bank of Thailand relaxed the loan-to-value ratio for mortgage loans to allow banks to lend more to the buyers, which struggles one of the highest household debt levels in Asia. The fall of the earthquake is likely to affect the question over the next three to six months, Kiatnakin Phatra Securities said. The brokerage said in a report in a report this week that high brokers are facing a high degree of additional inspection and recovery costs, especially high exposure developers, such as Ananda Development PCL and Origin Property PCL. Meanwhile, Top Thai developers like Sansiri PCL have launched a publicity blitz on social media to restore the confidence in the safety of their buildings. Sansiri CEO Uthai Uthaisangsuk said in a video message that more than half of its 250 residential projects were inspected, and that the firm had not discovered major structural damage. Other developers have made similar safety insurance on their properties. Although developers with high exposure to homes in their portfolio will be hit harder, little smaller that provides at country houses may even benefit as buyers move preferences to such homes, according to analysts. The Condominium Association considers any impact of the earthquake on demand for short duration, as there was no major structural damages to the residential towers and no deaths. Prasert Taedullayasatit, president of the association, said: ‘There were some jitters with the cracks and materials,’ especially in high condom houses. “Quick action by most developers and a lack of deaths due to condom collapse should provide some confidence in the structure and construction quality of those properties.” A measure of property developers fell 3.1% on Monday before the losses were linked in the next session. The property index has dropped about 32% over the past year, more than the 15% decline in the benchmark index during the same period. -With help from Janine Phakdeetham. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP