Chainid Ngow-Sirimanee, managing director of Property Perfect, said that while the sector faces higher costs because of oil prices and interest rates, most home-buyers were delaying decisions to buy new houses out of concern for the political situation.

"We believe that property sales in the first quarter of this year may have fallen between 5 per cent and 10 per cent, compared with last year," he said.

In keeping with the market trend, property firms have to change their business plans when launching new projects by focusing on housing prices between Bt3 million and Bt5 million, where there is strong demand, rather than building houses worth up to Bt10 million, Chainid said.

Developers are currently searching for ways to reduce their construction costs, which rose by up to 10 per cent in the first quarter. They are unable to increase the prices of their houses, he said.

Lalin Property managing director Chaiyan Chakarakul said his company had adjusted its investment plans to cover just three projects this year instead of five as previously planned because demand for new houses is forecast to fall by between 5 per cent and 10 per cent this year.

"Purchasing power to buy new houses fell when interest rates rose and oil price rises are driving up the cost of living," he said.

However, the Thai Condominium Association's president, Atip Bijanonda, said his association had joined the Housing Business Association and the Thai Real Estate Association to stage the "House and Condominium Fair 14", which began yesterday at Queen Sirikit Convention Centre.

The fair, which is an effort to boost property sales in the current quarter, ends tomorrow. It was organised after the drop in housing sales during the first quarter.

"We hope the fair will help housing sales grow by up to 10 per cent in the second quarter of the year," Atip said.

Somluck Srimalee

The Nation