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2018 Bangkok Real Estate Markets, 13% Drop
AREA Press Release No. 218/2018: April 17, 2018

Dr.Sopon Pornchokchai, Ph.D. Dip.FIABCI, MRICS
President, Agency for Real Estate Affairs (AREA)

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.