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Prices To Rise Up By 10% This Year

Posted by admin on April 17, 2015

According to TRIS Rating in its latest research, residential properties prices are expected to rise by 5 to 10% this year.

In fact, the Thai property market will benefit from a more stable political situation, declining interest rates as well as stable costs for construction materials and manpower. This will result in a continuous price increase through the year.

However, the market as a whole will remain flat and will only see a slight improvement. Actually, significant concerns regarding the Kingdom including lower-than-expected GDP growth (originally 4% but recently reviewed down to 3.8% by The Bank Of Thailand), high level of household debts and increasing amount of units inventories.

According to the Agency for Real Estate Affairs (AREA), in 2014, the number of units launched in Bangkok and surroundings declined by 13% year-on-year and the amount of units sold decreased by 22%, therefore increasing the number of residential units remaining unsold by 16% at the end of 2014.

Despite this previously mentioned drop in sales, Thai property developers are well rated by TRIS. In fact, most of them showed much higher operating margins because of more cost-effective marketing campaigns.

Nevertheless, following the trends of the last past years, housing prices are thought to keep on increasing. Indeed land prices that constantly rise will drive residential properties – and especially condominiums along the BTS/MRT lines up.

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