Bigger not better for Bangkok housing market

Various reasons have led experts to believe 2013 will see buyers in Bangkok look for smaller properties.

Smaller is better, or at least more affordable, as land prices and construction costs rise for single houses and townhouses next year, while consumers’ budgets remain unchanged, the Bangkok Post reported.

Soonthorn Sathaporn, managing director of the small developer Chalerm Nakorn Co, told the newspaper, consumer purchasing power cannot catch up with unit price rises due to the soaring cost of development. Just as condos have shrunk, so will single houses and townhouses.

The usable area for a single house next year could be as small as 110 square metres, down from 180 sqm, while that of a townhouse may be 70 sqm, down from 120 sqm, Sathaporn said.

Samma Kitsin, director-general of the Real Estate Information Center (REIC), said next year the market for the low-rise housing segment will return, as people are confident that flooding will not reoccur.

He estimates the total new low-rise houses launched in Greater Bangkok this year at 35,000 units, down from 40,000 last year. Total condo launches this year will reach 64,000 units, close to the boom year of 2010, and up from 42,000 units in 2011, the Post reported.

An REIC market survey noted for the first 10 months, the number of new low-rise housing projects in Greater Bangkok totalled 171 with 28,519 units. Condo projects launched over that period numbered 121 with 47,213 units.



Filed Under: NewsNews by CountryThailand

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