According to the Agency for Real Estate Affairs (AREA), the slowdown is based on the projected number of units available for sale in the capital and its surrounding suburbs, which will likely stand at 99,632 units. By value, the decline will likely be 28 percent year-on-year, or THB 276.13 billion. This represents an improvement from an earlier prediction of more than 30 percent, on par with the rate seen in flood-hit 2011.
The trend has reversed since the May 22 coup brought back stability and confidence, said AREA president Sopon Pornchokchai. He added that the market contraction helps prevent a bubble in newly launched supply, surmising, “It is a consolidation year before growth resumes in 2015.”
Mr. Pornchokchai also offered the insight that “new houses used to start at 3 million baht but [prices] were 10 percent lower in the first half to attract homebuyers”. However, the lower selling prices came with smaller home sizes due to higher construction costs.
During the first six months of the year, 36,184 units were sold, down 37 percent from the same period last year. In the same period, 212 projects were launched with a total of 49,816 units. Of this figure, over half or 25,291 units were condos. The rest included 13,903 townhouses, 7,291 single houses, and other housing types.