New launches up but average price heads south in Thailand

Thailand’s Agency for Real Estate Affairs (AREA) has revealed that the number of newly launched projects increased by 45 per cent during the first five months of 2010 – but the average unit price for new launches dropped by 35 per cent compared to the same period in the previous year.

AREA’s President Dr. Sopon Pornchokchai said that 111 new property projects were launched in Thailand during the first five months of the year, with a total of 28,374 units valued at more than THB65 billion (US$2 billion). Of the 111 new projects, 24 came from Prueksa Real Estate, one of Thailand’s largest listed property developers. The combined value of these projects alone was THB11.8 billion (US$365 million).

Meanwhile, the average price per unit was THB2.29 million (US$70,612), 35 per cent lower compared to a year ago when the average price stood at THB3.5 million (US$107,964) per unit.

Dr. Sopon predicted that there will be a total of 266 new projects, or 69,233 units, launched by the end of the year. He also anticipated the average price per unit will fall slightly to stand at THB2.25 million (US$69,325).