Bangkok Single House Price Index Hits High in Final Quarter

After land prices in the three provinces rose in the previous quarter, the price index for new single-detached homes in Samut Prakan, Nonthaburi, and Pathum Thani surged, reaching an all-time high in the fourth quarter of last year.

The price index of newly constructed single-detached homes for sale in the three provinces increased by 7.6% to 134.6 in the fourth quarter of 2022 from 125.1 in the corresponding period of 2021, according to the Real Estate Information Center (REIC).

In Bangkok, the index registered 123.6, a decline of 0.6% year over year and a fall of 2.2% quarter over quarter. The index increased by 5.3% from 127.8 in the third quarter of 2022.

The total index for the four provinces increased 4.9% annually and 2.8% sequentially.

The provinces of Samut Prakan, Nonthaburi, and Pathum Thani saw the biggest year-over-year rises in land prices in the third quarter of 2022, according to a report from the REIC in November of last year.

They included the Samut Prakan districts of Bang Phli, Bang Bo, and Bang Sao Thong, which had growth of 55.7%, followed by the Nonthaburi districts of Muang and Pak Kret, which saw increase of 42.8%.

The Muang, Lat Lum Kaeo, and Sam Khok districts of Pathum Thani followed with increases of 28.1%.

The price index for new low-rise homes, which comprises single detached homes and townhouses for sale in Greater Bangkok in the fourth quarter of 2022, increased for the first time in three quarters, according to interim REIC director-general Vichai Viratkapan.

After marginal quarterly losses of 0.01% and 0.1% in the second and third quarters and an upswing of 0.4% in the first quarter, the index increased by 2.4% from the third quarter, according to him.

The price index for low-rise homes had its first growth since the first quarter of 2021 in the fourth quarter of last year, when it increased 2.7% year over year. The index experienced a series of declines from the first quarter of 2021 to the third quarter of last year, the first such downward trend since the index was initiated in 2012.

The launch of numerous new projects during that time, together with rising expenditures, were major factors in the higher price index for low-rise homes, according to Mr. Vichai.

All building materials saw price increases in the fourth quarter of last year, with the exception of tiles, which led developers to increase the cost of their real estate.

The majority of promotions presented to buyers of low-rise properties during the time period took the form of a waiver of charges on the transfer date, which was ascribed for 40% of the higher prices.

Free giveaways of equipment including air conditioners, water pumps, electricity and water meters, gardening tools, and the installation of grass were the second most popular campaign, with 36% of participants.  Cash savings decreased to 23% of campaigns from 36%.

As developers turned their attention to low-rise home sales in the fourth quarter of 2022, the price index of new condos for sale in Greater Bangkok decreased 1.9% from quarter to quarter and 0.6% year over year. According to the REIC, the bulk of promotions given to condo buyers were reimbursement for costs incurred on the day of transfer.

According to Mr. Vichai, "the decline in the condo price index was probably brought on by cash discount campaigns as developers intended to speed up sales and transfers before the lowering of the loan-to-value restriction expired on December 31, 2022."

Source: Bangkok Post