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Bangkok, which accounts for about 50 per cent of Thailand’s housing market, saw new launches tumble in 2024. - Bloomberg
BANGKOK: New housing project launches in the Thai capital fell 19 per cent last year as prices surged and developers focused more on building expensive properties, according to an industry consultant.
Bangkok, which accounts for about 50 per cent of Thailand’s housing market, saw new launches tumble to 375 projects in 2024 from 462 a year earlier, Agency for Real Estate Affairs Co. said in a statement on Friday (Jan 31). The new launches were valued at 413.8 billion baht (US$12.3 billion), it said.
The average price of residential properties has been steadily increasing over the years with prices jumping to 6.73 million baht per unit last year from 3.94 million baht in 2019, Sopon Pornchokchai, agency’s president, said in the statement. Still, developers sold nearly 96 per cent of the newly offered units in 2024, he said.
"Cheaper products were harder to sell than more expensive ones,” Sopon said.
Thailand’s property market has been hit hard by the highest household debt level in South-East Asia and banks becoming more cautious about lending amid an increase in non-performing loans. The government has tried to revive the real estate sector with cuts in property registration and transfer fees.
Large Thai developers have shifted their focus to building ultra luxury condominiums and villas in Bangkok and the resort island of Phuket to tap demand from rich locals and buyers from Russia and China.
Still, new project launches this year may rise five per cent this year as supply in the market continues to decline. "The market glut may not be as much as many parties are worried about,” Sopon said. - Bloomberg