Launches Down But Land Prices Up
According to the Agency for Real Estate Affairs (AREA), Thailand Real Estate market will grow by 10% in 2015 following a 24% decrease in new launches announced this year. However, the expectations have considerable improved compared to earlier this year as investors’ confidence towards Thai property market is slowly but surely returning since 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 also announced that during the first six months of the year, 36,184 units were sold, down by 37% from the same period last year. Of this number, 51% were condominiums, with 13,903 townhouses, 7,291 single houses and the rest being other housing types.
Although the average selling prices of properties dropped by about 5% to THB2.77M per unit in Greater Bangkok, Land prices continuously grew by 3 to 5% during the first half of 2014.