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Low-rise Bangkok house projects expected to drive market growth

By on Feb 05, 2016 in Property News, Residential

Despite the weak economy the Thailand and Bangkok property market is expected to pick up in 2016. Largely it will be driven by the low-rise Bangkok house segment.

Atip Bijanonda, president of the Housing Business Association, said the property market this year would grow by 5-10%, boosted by the single-house and townhouse segments. “In many provinces, condos will remain sluggish this year, while demand for single houses and townhouses will continue to grow as supply remains limited,” he said.

Prasert Taedullayasatit, president of the Thai Condominium Association, said sales of single houses and townhouses had picked up since the 3rd quarter last year. Demand was strong for townhouses priced 2-3 million baht as large developers moved to the segment. “Developers should prepare for changes in the real estate landscape,” Mr Prasert said. “As happened last year, big developers are expected to continue dominating the residential market, putting smaller developers in trouble.”

Don Nakornthab, senior director of the financial institutions strategy department at the Bank of Thailand said, “Developers should be more cautious in property development as the economy remains slow, with high household debt and low prices of agricultural products having an impact on consumers’ purchasing power,” he said.

Chartchai Payuhanaveechai, president of the Government Savings Bank, said “Property developers should keep an eye on the market trend, diversify to single-house and town house development, especially in provinces, focus on the middle to lower end segment, continue improving products to differentiate and consolidate brands to save marketing costs,” he said.

It is hoped the property tax incentives should help drain housing stock in Bangkok.  The REIC reported the number of housing units launched in Bangkok last year dropped from 118,300 to 104,900 in 2014. Condos had the biggest decline from 73,100 to 60,400 units.

Source: Bangkok Post 28th Jan 2016
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