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Apartment in Phuket – Good time to buy?

By on Mar 28, 2014 in Property News, Residential

Now is a good time to buy a home, with construction costs virtually the same as last year amid the economic slowdown, property developers and contractors said this week.

“Our construction-material costs this year have been maintained at just about the same as last year’s level, as the government’s Bt2-trillion mega-infrastructure projects have been delayed,” said Plew Trivisvavet, chief executive officer of top-three construction company Ch Karnchang.  He said that last year, contractors had been faced with two major issues. The first was a construction labour shortage, due to the rising property market and the government’s infrastructure-expansion programme, which had taken labour away from the residential sector.  The second was rising construction-material prices, due to increased demand in what was then a rapidly expanding market.

Meanwhile, land prices this year are below 2013 levels, thanks largely to the suspension of the government’s mega-project programme.  The price of most of the land located close to the planned rail-system expansion had previously more than doubled since the plans were agreed in 2012, but have now fallen by between 20 and 50 per cent due to the delayed public-sector investment programme.

Thamrong Panyasakulwong, president of the Thai Condominium Association, said land prices in those provinces due to benefit from the now-delayed rail-system programme had dropped by between 20 and 50 per cent.

LPN Development managing director Opas Sripayak also sees residential prices being maintained in the first half of the year, due to relatively stable construction-material costs and slower overall demand caused by many potential home-buyers delaying their purchasing decisions during the current quarter as they wait for the country’s political crisis to end.  This is, therefore, a good time for anyone planning to buy a home to take the plunge, he said.

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