Property prices in all sectors of the market throughout Thailand saw substantial year-on-year increases to the end of January 2015, although month-on-month declines in some sectors many be a cause for concern for developers in the landed and condominium sectors.
According to the most recent data from The Bank of Thailand all property sectors in Thailand grew year-on-year during the first month of the year.
The House Price Index produced by The Bank of Thailand and assessed by commercial bank mortgage loans, has been in place since January 2009 when a figure of 100 was given as the base mark for all categories.
In the first month of 2015, the prices on single detached homes, including land, rose by 4.4 percent year-on-year to stand at 118,1 points – which was actually a slight reduction from the previous month.
Town house prices, including land, saw a 5.9 percent year-on-year growth to reach 131.9 points. This, again, was a small reduction from the previous month.
Land prices rose by 8 percent year-on-year to reach 159.0 points in the Bank of Thailand Index, and this was a more than 3 percent rise from the previous month.
Prices of condominiums rose by 15.3 percent year-on-year, according to the Index, to stand at 164.1 points, although this was actually a 0.8 point reduction on December’s figure.
In making its calculations, the Bank of Thailand makes the following points.
The prices of Single detached houses including land, and town houses including land, as well as condominium price indices have been constructed by using hedonistic regression method (seasonally adjusted, 3-month moving average).
The Land price Index has been constructed by using mix adjustment method with fixed weight (seasonally adjusted, 3-month moving average).