Bangkok condominium supply and asking prices kept increasing in 2006. The condominium supply in the downtown area increased by 2.8% q-o-q and by 6.9% y-o-y. The occupancy rate fell slightly from the previous quarter to 84.0% in Q3 2006. Resale prices increased slightly by 0.9% q-o-q and 7.4% y-o-y, while the average asking price of new projects increased by 2.0% q-o-q and 10.3% y-o-y. The overall performance will depend on whether the political situation will become more stable and whether the interim government’s policies reassure buyers regarding the economy. A slowdown in the condominium market was attributed mainly to the political instability and weakened buyers’ confidence, since the market relies on both endusers and investors. Condominiums in downtown Bangkok are still considered good value for money by investors because of potential price appreciation and good rental prospects. Budget condominiums, i.e. units priced below three million baht, are proving to be still in demand, especially those located close to the mass transit systems. The downtown condominium market is expected to have more than 2,000 new units that will be completed in the fourth quarter of 2006, with a further 5,000 to 6,000 units per year during the next few years. The significant increases in the number of projects and units launched have made the market much more competitive, even in the peripheral areas of Bangkok.