The housing market will improve slightly this year, with more than 80,000 units of new supply serving pent-up demand from last year’s fourth quarter and the higher incomes of civil servants.
Sopon Pornchokchai, president of the property consultant Agency for Real Estate Affairs (AREA), said last year’s floods affected 23 housing projects which were subsequently closed down for renovation.
The floods also delayed project launches in the fourth quarter last year, with a total of 300 projects opened for sale. Of the total, half were condominiums, 30% townhouses and 20% single houses.
According to its survey, 407 projects were launched in 2011, with a total of 85,800 units worth 256 billion baht, down by 27% and 15%, respectively, from 2010. The demand in 2011 was 81,000 units.
In Bangkok, the Real Estate Information Centre detected a sharp rise in new residential projects in the area near the Ratchadaphisek-Rama IX intersection, with 8,900 units offered by 10 projects over the past five years. Some 80% of the units are sold to people working in the area and investors buying with the intention to rent.
The average selling price of condominium units in the area rose from about 45,000 baht a square meter to between 80,000 and 135,000 baht at present.
The appraisal price of land in the area is between 150,000 and 220,000 baht per square wah, but the actual selling price may be double that.