Bangkok Real Estate Activity In April
- Author Tom Aikins
- Published July 16, 2011
- Word count 485
Real estate activity in Bangkok market was vigorous in April with 41 new projects that will include 11,263 new units with a total value of 29,470 million baht. The new housing units are mostly condominiums with 5536 units (49%), followed by single family homes with 2879 units (26%), townhouses with 2364 units (21%). These new units are mainly located along the extension of the Purple Line. (Bang Sue - Bang Yai) and the Pink Line (Chaengwattana - Ramindra), the new mass transit underground train lines being developed by the MRT.
Interms of the developers who are involved in these new projects, 70% of the units are from nine companies listed on the Stock Exchange of Thailand including Pruksa Real Estate PLC, Land & House PLC, Lalin Property PLC, Major Development Plc, Asian Property Development PLC, LPN Development PLC, Sansiri PLC, Thanasiri Group PLC, Supalai PLC. In terms of location three of the newly launched projects are located in inner Bangkok and 29 projects are in greater Bangkok areas such as Chaengwattana Road, Ramindra Road, Nawamin Road, Ladprao Road, Srinakarin Road, Bangna -Trad Road, Thepharak Road, Rama 2 Road, Ekachai Road and Kanchana Bhisek Road. The remaining nine projects are located outside Bangkok’s outer edge in areas which have direct transportation systems direct into the city center and are near communities such as Samut Sakhon and near industrial estates such as Rojana Industrial Park and Wang Noi.
Real estate sales in the past four months were in a stable condition including both vertical and horizontal residential by accepting that doing business today with pressure from economic risk factors and principal costs increase in both direct and indirect ways. Particular principal cost interest that affect consumer feelings who might delayed their decision on making a purchase. Every 25 satang of interest increase impacted consumers by causing them to pay 2% more. The most affected housing market are projects with houses that cost less than 3-5 million baht. After the Monetary Policy Committee (MPC) increased interest rates another 25 satang to 2.75% it is estimated that the annual interest rate policy may soon be higher than 3% to control inflation
The impact of increasing interest rates is affecting the decision to purchase new products and affecting the transfer of ownership that may affect sales. There have been 112 new residential projects launched in 2011 totaling 28,683 units and a total development value of 68,749 million baht in the Bangkok metropolitan and surrounding areas with a new housing average price of only 2.397 million, while in 2010 the average price was 2.587 million baht.
In 2011 there will be a combined 426 new projects that will launch, down 4% from 2010. The numbers of new opening units will be around 108,995 units which is a decrease of 7%. The total value of these developments may be lower than in 2010 by about 14%. However, in 2011 the situation should be back to normal with very little oversupply. However, if more new construction tops 100,000 residential units per year in the next one to two years a real estate bubble may occur in late 2012.
See some of the best Thailand properties at thailand sale and consult with our representatives at property thailand.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- How Architects Are Shaping Sri Lanka’s Real Estate Boom
- Directing Las Vegas Homes for Sale: How Live Better in Las Vegas Guides Buyers to Success
- Understanding the Renters' Rights Bill: Key Changes and Timeline Explained
- Costs of buying property in Spain - IMS Mortgages
- Three Easy Steps to Sell Your San Antonio House Fast!
- Discover Your Dream 55+ New Construction Home Community in the Greater Tampa Bay, Florida
- Article on Mortgage Lenders and New Homes Mortgage Helpline
- The Advantages of Utilising Professional House Removals Services
- Manilva: A Rising Star in Off-Plan Property Investments
- Comparing Removals services-in-wandsworth: Your Ultimate Guide
- Port Orange -- The Perfect Twin Sister to Daytona Beach
- RE/MAX Ace Spearheads Innovative Housing Solutions in the GTA
- Should You Waive the Home Inspection Contingency? Weighing the Risks and Benefits
- Avenir: Embracing Lifestyle and Community in Palm Beach Gardens
- Serbian Real Estate: A Tidbit for Investors
- Discovering Life in Pattaya, Thailand: An In-Depth Handbook for Expatriates
- DEBUNKING HOME REPORT MYTHS
- Don't Let a Financial Hardship Force You to List Your House
- Safe Water Starts at Home
- Don’t let Missing Insulation Lead to High Energy Bills
- Property Investors Amidst Favorable Swedish Krona Rates
- How Real Estate Professionals in Houston Go Above and Beyond for Home Sellers
- Reasons to invest in real estate in Cyprus
- Top 10 criteria to select an Insurance Claim Appraiser
- Comprehensive Home Inspection Checklist for Buyer, Seller, and Homeowner
- DEBUNKING HOME REPORT MYTHS
- North Carolina Real Estate Market: Shifting Market Dynamics on the way?
- Selling Your House in Winter: Effective Tips and Strategies for Success
- Would you like to have a Free House?
- 5 Ways To Know You're Ready To Buy A Home