The state of Thailand’s residential real estate market

DDproperty Editorial Team
The state of Thailand’s residential real estate market
The Thai home price market is expected to increase in 2022.
Following a decline since the first quarter of 2020, new home costs are on the rise due to higher inflation, a labor shortage, and rising fuel and construction material prices.
“In 2022, we expect to see property prices go up by 3-5 percent,” Apa Ataboonwongse, chief executive officer at Richy Place told The Nation Thailand.
“Developers cannot maintain the same prices despite management cost having reduced over the past year. Also, due to COVID-19, most migrant workers have returned to their countries, causing labour shortage,” she added. “This, in turn, has spiked the manpower cost and delayed most projects by 10 to 20 percent from their previous schedules.”
A domino effect has occurred within the global supply chain. According to Bangkok Post, delays in shipping and supply shortages are the main reasons for the non-delivery of exported materials.
There will be a significant increase in construction material prices this year, particularly steel, which has risen 30 percent.
The Bureau of Trade and Economic Indices also noted the price increases for concrete (5.6 percent), aluminium, asphalt, and sand (4.2 percent), as well as electricity and water (3.8 percent).
Wichai Wiratkaphan, acting director of Government Housing Bank’s Real Estate Information Centre noted that developers will be offering fewer discounts and promotions as demand matches supply in the property sector.
Marketing campaigns were used extensively last year due to the impact of the pandemic on consumer confidence.
Freebies were the most popular promotion for enticing low-rise homeowners in the fourth quarter of last year, accounting for 44.4 percent. Air conditioners, furniture, drapes, water pumps, and water tanks were among them.
This was followed by cash discounts as well as transfer fees and common area expenses, which accounted for 28.8 percent and 26.7 percent, respectively.
Condominiums took the brunt of the consecutive drop since Q3 2020.
The Property Report editors wrote this article. For more information, email: propertyreport@propertyguru.com.
Disclaimer: The information is provided for general information only. DDproperty by PropertyGuru c/o AllProperty Media Co., Ltd. makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

Mortgage Repayment Calculator

This calculator helps estimate the monthly loan repayments for your dream home

Affordability Calculator

Estimate what you can comfortably spend on your new home

Refinancing Calculator

Find out how much you can save by refinancing your existing home loan.