House prices to increase 4-5%

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BANGKOK, 21 May 2011 – House prices are expected to increase by 4-5% following the rising construction material costs while investors are encouraged to invest in housing business of which growth rate is higher than the normal national inflation rate.

 

Sena Development Executive Director Asst Prof Dr Kessara Thanyalakpark expected that housing developers will increase prices of all types of property from house, condominium to townhouse by at least 3-5% following the rising construction material costs.

Asst Prof Dr Kessara added that projects near sky trains or undergrounds will be even more expensive since they are in high demand, especially along Chaeng Wattana Road, which is also another important venue for investment with mushrooming public and private offices.

Meanwhile, Real Estate Information Centre Executive Director Samma Kitsin suggested that investors should shift to make investment in housing business because it offers greater value than the inflation rate growth.

Ms Samma explained that the housing business growth from the mid of 2009 to the mid of 2010 was at 6% while the national inflation rate was at 4%. He added that houses took only 12 years to have their prices double unlike other kinds of goods which took at least 18 years.

The Executive Director reported that people at present have been delaying their decision to buy new property as they are waiting to see policies of the new government. He believed that the housing market will become lively once again after the election.