To flood or not to flood: Thailand property market awaits the wet season

Thai property developers await this year's rainy season.

If there is no severe flooding this year home sales will recover, according to the Kasikorn Research Center.

The center has conducted research on the property markets across Thailand in the first half of the year, and found that overall the market remained fairly active in the first six months.

The provincial market was the busiest, with big developers in Bangkok shifting to outlying regions, reported the Bangkok Post, while in Bangkok, the impact of last year’s flood continue to dampen demand especially in the low-rise segment where sales and launched have slowed.

In the first four months of the year, housing transfers in Greater Bangkok fell 7.4 per cent to 42,663 units, compared to the same period last year.

The predictions for the full-year transfers are between 148,700 to 154,000 units, which translates into between a 1 per cent decline or a 2.5 per cent growth compared to 2011. Last year’s transfers fell 12.8 per cent, according to the Bangkok Post.

Unit launches fell 16.3 per cent year-on-year, to 34,008 units in the first five months, of which 77.9 per cent were condominium units.

Although the Thai economy is expected to recover fully in the second half of 2012, and even grow, there are other negative factors affecting the property market in the same period. As of July 1st, new appraisal prices will apply, increasing the fees for property transactions. The Bangkok Post reported that the cost of property development is in an upward trend, forcing developers to maintain or even increase prices slightly.

Kresearch expects 84,500-87,500 unit launches this year, close to last year’s 85,800 units.

Filed Under: NewsNews by CountryThailand


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