Sopon Pornchokchai, managing director of the Agency for Real Estate Affairs, said the expected drop in demand for new housing was due to home-buyers' concerns about the country's security. He said they did not feel inclined to visit housing projects to look for a new home at this time.

Meanwhile, construction has been delayed on some of the 111 new property projects that were previously announced would open this year, because the companies involved are waiting to see what the domestic political and economic environment will be like.

Sopon believes the market uncertainty will cause the local property market to drop up to 10 per cent this year in terms of value and 5 per cent in terms of unit numbers.

The local property market recorded 66,510 units worth a total of Bt174.11 billion sold last year.

Of that total, 21 per cent were detached houses, 27 per cent town houses and 52 per cent condominiums.

However, research by international property consultant Knight Frank Chartered (Thailand) indicates that demand for budget condominiums will continue to grow this year compared with other property sectors.

The research indicates that new condominiums located near mass-transit systems and priced at less than Bt2 million a unit will enjoy stronger demand than will luxury condominiums.

Knight Frank Chartered said condominium projects located along Rama III, Sukhumvit, Ratchadaphisek and Sathorn roads showed a higher demand than ones located in other areas.