Recent increases in land and construction costs will likely result in a three to five percent increase in new property prices during the next four months according to Thai developers.
Local media reported that developers who have already increased their prices include Sansiri, which called a two to three-percent rise, and Pruksa Real Estate, whose prices will increase by up to four percent during the second half. SC Asset Corporation has said its increase will be in the range of between three to five percent
Thongma Vijitpongpun, President and Chief Executive Officer at Pruksa Real Estate, said the increase is a reaction to the between five and 10 percent growth in land prices and raw materials costs.
LPN Development has maintained the current level of its condo prices, although it has adjusted the design of its projects based on the rising costs.
“We did not adjust the residential prices directly but we have re-sized our residences and maintained prices to match our customers’ purchasing power,” said Opas Sripayak, Managing Director at LPN Development Plc.
Tweaking designs rather than the prices is the best way to go as different locations encounter varying demand and competition, added Opas.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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