House prices to be adjusted in latter half of year

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BANGKOK, 17 April 2012 – A real estate expert believes that house prices in Thailand will increase in the latter half of the year, while more condominium projects will be launched.

Housing Business Association President Issara Boonyang said that the real estate price adjustment will happen as a result of the minimum wage and construction material price hikes.

In the meantime, he stated that more new projects will be launched this year than usual. He explained that over 20,000 new housing units were on offer in January and February this year alone, whereas, in some previous years, only 50,000 new units were introduced for the whole year.

Mr Issara added that most real estate projects set to be launched this year are condominiums, accounting for 65% of all projects, which is the highest proportion in history. He cited that developers believe that homebuyers are still scared of floods and are showing more interest in vertical living.

Even though the real estate sector severely suffered from the devastating flood last year, Mr Issara said the market has shown some good recovery as the sales figures in the previously-flooded zones are increasing to nearly normal. He expects more housing estates to be developed in the second half of the year.