Overall, the real-estate market will see growth slow to 4-5 per cent this year from an average of 10-15 per cent previously, Manop said. Developers should pay close attention to oil prices and interest rates before they invest in new housing projects.

Manop urged the government to lower interest rates as an incentive for first-time home-buyers.

KC Property president Apisit Ngamachariyakul said only 13,000 detached housing units out of 40,000 registered were put on the market last year. This signalled a lack of confidence among developers, he said, urging the government to take steps to boost demand.

Visit Ongpipttanakul, deputy managing director of Trinity Securities, agreed the government should "focus on the supply side". He said interest rates were likely to decrease but was cautious about swinging oil prices.

Suphin Mechuchep, managing director of Jones Lang LaSalle Thailand, said the outlook for two sectors of the property market - commercial and retail - remained rosy.

There is a shortage of office space because developers flocked to the condominium market over the past couple of years, she said.

Forecasting additional demand for 200,000 square metres of office space this year, Suphin - whose company leases offices - said rents were set to increase 15-20 per cent this year. 

Ki Nan Tsui

The Nation