In Q3 2020, the condominium market in Bangkok continued to experience negative impacts from the COVID-19 pandemic as the market had not fully recovered. Purchasing power of both domestic and foreign buyers faced increasing pressure from the slow economic growth. The number of newly launched condominium units in Bangkok this quarter totaled 8,934 units, which decreased by 25.9% Y-o-Y. The condominium market in the midtown/suburban area remained much more active in terms of the number of newly launched projects when compared to the downtown area.
The Bangkok condominium market still experienced a slow sales rate as the level of pent-up demand had dropped after July. The aggressive discounts we have been seeing in selective projects from some developers since the lockdown period continued especially in completed buildings as developers had aimed to clear their existing stocks.
The number of tourist arrivals to Thailand for the first nine months of 2020 remained the same at 6.7 million, a decrease of 77.3% Y-o-Y from 29.5 million in the same period of last year due to the extended restriction of commercial flights to the country.
The high season in the fourth quarter of this year will prove to be very challenging for the hotel industry. The period which normally sees the highest influx of international tourists will now have to solely rely on the local market to survive.
The total Bangkok office supply was at 9.17 million square metres, increasing by 0.22% Q-o-Q and 2.12% Y-o-Y, from 9.15 million square metres in Q2, from the completion of Summer Point and Lumpini Tower Vibhavadi-Chatuchak Tower A and B and removal of some buildings which have been repurposed.
By the end of the year, we expect another 59,600 square metres of office space, all from Grade B Non-CBD buildings, to be completed. The amount of supply under construction remains our key concern with over 1.17 million square metres being built from now until the end of 2023 and another 72,000 square metres in 2024 from Central Park Offices in Dusit Central Park.