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The effects of cheaper oil on Thailand Property

By on Jan 27, 2015 in Property News, Residential

There is a view Thailand property prices should remain stable this year due to lower oil prices and the cost of construction materials remaining near last year’s level, property experts said.

Pruksa Real Estate president and chief executive officer Thongma Vijitpongpun said that if the global oil price stayed below US$50 per barrel, that would reduce logistic costs by more than 10 per cent. This means property companies should be able to keep prices flat.

Land & Houses president Naporn Sunthornchitcharoen agreed that home prices would not go up, but noted that they also would not go down, as the cost of land would continue to increase in some locations.

Saenphin Sukhee, managing director of Golden Land Residence Co, a subsidiary of Golden Land Property Development, said his company would also keep its prices at the current level, as construction-material costs were being maintained or even dropping in some cases. However, the company cannot cut prices because the cost of land is rising by 5-10 per cent, he said.

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