January 23, 2008
BANGKOK - Sales of new homes in Bangkok were up last year but the units sold at lower prices, a top property analyst said Tuesday.
Sales in Thailand's capital were valued at 186.2 billion baht (5.6 billion dollars) in 2007, marginally lower than the 186.9 billion baht sold in 2006, said Wason Khongchantr, managing director of the Agency Real Estate Affairs.
But the number of sold units jumped by 23 percent, from 66,118 in 2006 to 81,364 last year.
Wason told AFP the difference was that most of the 2007 sales were in low to mid-range units, especially condominiums, which accounted for 53 percent of new homes sold last year.
"Condominiums, especially at low and mid-range prices, are currently in top demand compared to other housing projects. That is due mainly to changes in consumers' behaviours and the country's economy," Wason told reporters.
Wason said condominiums are expected to remain in high demand.
But the construction of three new rail lines reaching to the outskirts of Bangkok could eventually boost demand for detached houses if the new government offers incentives to home buyers in the suburbs.
Consumer confidence has been mired at five-year low since the military staged a bloodless coup in September 2006, but analysts widely expect sentiment to improve once the newly-elected government takes office.
