0:00
0:00
Rising Costs Drive Up Thai Property Prices for Eighth Consecutive Quarter
Higher land and construction expenses push new home and condominium prices higher across Bangkok and surrounding areas.
Thailand’s property market continues to experience price increases driven by escalating land and construction costs, according to the latest report from the Real Estate Information Center (REIC).
Prices for new condominiums and housing estates have risen for eight and nine consecutive quarters, respectively, reflecting broader economic pressures on the real estate sector.
Data from REIC shows that new housing estate prices in Bangkok and its surrounding areas increased by 0.8% year-on-year in the fourth quarter of 2024, reaching an index of 131.4 points.
The most significant price surges were recorded in Minburi, Nong Chok, and Lat Krabang for detached houses priced above 10 million baht, while townhouse prices rose in Phra Khanong, Bangna, Suan Luang, and Prawet.
Condominium prices experienced a sharper increase, rising 3.6% year-on-year, with Samut Prakan and Nonthaburi seeing the highest growth rates of 4.2%, outpacing Bangkok’s 3.4% increase.
The areas of Huai Khwang, Chatuchak, and Din Daeng, where condominiums are priced between 3 to 5 million baht, saw the steepest price growth in the capital.
The surge in real estate prices is largely attributed to rising construction costs.
The Standard Housing Construction Cost Index (HCCI) reached 139.9, reflecting a 4% year-on-year increase.
Key contributors include a 12% rise in sanitary ware prices, a 5.6% increase in tile costs, and a 3.7% rise in electrical and plumbing expenses.
Labour costs also climbed by 4%, further adding to overall construction expenses.
In response to these rising costs, developers are offering more aggressive sales promotions to attract buyers.
The use of cash discounts increased from 21.7% to 25.2% quarter-on-quarter for condominiums, while discounts for housing estates rose from 21% to 29.6% over the same period.
Despite price hikes, consumer purchasing power remains under strain due to slower economic growth.
The government is expected to introduce low-interest housing loan schemes through state-owned financial institutions in early 2025 to support homebuyers and stimulate the market.
Prices for new condominiums and housing estates have risen for eight and nine consecutive quarters, respectively, reflecting broader economic pressures on the real estate sector.
Data from REIC shows that new housing estate prices in Bangkok and its surrounding areas increased by 0.8% year-on-year in the fourth quarter of 2024, reaching an index of 131.4 points.
The most significant price surges were recorded in Minburi, Nong Chok, and Lat Krabang for detached houses priced above 10 million baht, while townhouse prices rose in Phra Khanong, Bangna, Suan Luang, and Prawet.
Condominium prices experienced a sharper increase, rising 3.6% year-on-year, with Samut Prakan and Nonthaburi seeing the highest growth rates of 4.2%, outpacing Bangkok’s 3.4% increase.
The areas of Huai Khwang, Chatuchak, and Din Daeng, where condominiums are priced between 3 to 5 million baht, saw the steepest price growth in the capital.
The surge in real estate prices is largely attributed to rising construction costs.
The Standard Housing Construction Cost Index (HCCI) reached 139.9, reflecting a 4% year-on-year increase.
Key contributors include a 12% rise in sanitary ware prices, a 5.6% increase in tile costs, and a 3.7% rise in electrical and plumbing expenses.
Labour costs also climbed by 4%, further adding to overall construction expenses.
In response to these rising costs, developers are offering more aggressive sales promotions to attract buyers.
The use of cash discounts increased from 21.7% to 25.2% quarter-on-quarter for condominiums, while discounts for housing estates rose from 21% to 29.6% over the same period.
Despite price hikes, consumer purchasing power remains under strain due to slower economic growth.
The government is expected to introduce low-interest housing loan schemes through state-owned financial institutions in early 2025 to support homebuyers and stimulate the market.
