Greater Bangkok’s property market will grow 10 percent in 2015 after suffering a predicted 24 percent decline in new launches this year, according to the Agency for Real Estate Affairs (AREA).
The prediction for 2014 is improved following a recent resurgence in interest in the sector since late May.
AREA’s President Dr. Sopon Pornchokchai, told reporters: “The market contraction helps prevent a bubble in newly launched supply. It is a consolidation year before growth resumes in 2015.”
He revealed that during the first six months of the year, 36,184 units were sold, down by some 37 percent from the same period last year. Of this number, 51 percent were condominiums, with 13,903 townhouses, 7,291 single houses and the rest being other housing types.
He noted that land prices in Greater Bangkok increased by between 3 percent and 5 percent during the first six month of 2014, while average selling prices of housing units dropped to THB2.77 million per unit – from THB2.92 million in the same period last year. He said this was largely due to lower purchasing power.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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If you have a news story or comment for publication about Thailand property or real estate email: andrew@propertyguru.com.sg