Urgent. Dr.Sopon Pornchokchai, President, Agency for Real Estate Affairs (www.area.co.th) announced that in 2018, housing markets in Bangkok will decrease for 13% in the number of newly launched units. In terms of projects and value, the decreases were both 6%. However, the price per unit will increase for 7% to USD 133,336. This implies that most of the new developments catered to the well to do families; whereas, the lower income groups had limited affordability.
|Changes in Bangkok Housing Markets, 2017-18 |
|Year || No. of || No. of || Value || Price/Unit |
| || Projects || Units || (Bil of USD) || (USD) |
|Quarter 1/2018 ||96 ||25,026 ||3,337 ||133,336 |
|2018 (forecasted) ||384 ||100,104 ||13,347 ||133,336 |
|2017 ||410 ||114,477 ||14,247 ||124,454 |
|Changes, 2017-8 ||-6% ||-13% ||-6% ||7% |
|Agency Real Estate Affaris (www.area.co.th) |
The shrinkage of housing markets were due to the slow growth in the economy. Although the government announced the new economic growth rate of 4.1%, it was the lowest rate in the ASEAN Region (except Brunei and Singapore who had their per capita income 5-7 times higher than that of Thailand. Thai economy was driven mainly by public investments in infrastructure. Thus, that 4.1% was not the real growth enjoyed by the vast majority of the people. Nowadays, perhaps, only the public servants enjoy their lives due to their privileges among others.