Provincial boost market
REIC sees provincial launches boosting market
The Real Estate Information Centre forecasts the property market this year will maintain growth of between 5 and 10 per cent, especially given the number of residential launches in the provinces.The REIC believes developers will expand the number of housing projects in provinces located close to neighbouring countries, such as in the Northeast, much of which borders Laos, and especially in locations close to the East-West Economic Corridor.
The provinces most likely to benefit are Udon Thani, Nong Khai, Ubon Ratchathani and Mukdahan, where residential demand is expected to come from both local and foreign investors wishing to expand their investment in Laos when the ASEAN Economic Community comes into effect in 2015.
This is already driving up land prices in the four provinces, where the cost of land has more than doubled in some areas since the beginning of last year, the centre said.
Meanwhile, the REIC estimates that the number of new condominiums launched onto the market this year will not exceed 60,000 units, 4 per cent lower than last year.
Clarity from Bangkok City Plan
REIC director-general Samma Kitsin said the new Bangkok City Plan, which comes into effect in June, would provide a clearer picture for firms wishing to develop residential projects, as it would clarify the restrictions on development in some locations. This would make it easier to decide where to buy land for residential development.
"Last year, most property firms delayed their decision to buy land in some locations out of concern over the new city plan, which will change some of the rules restricting the development of high-rise housing," he said.
However, the number of new residential projects launched last year comprised 100,700 units. Some 62,600 were from 163 condominium projects, and 38,100 from 217 detached-housing and townhouse projects.
About 67 per cent were launched by 35 listed property firms, with LPN Development, Sansiri, Property Perfect, Supalai and Asian Property Development being the top five for condo projects during the year.
Meanwhile, Pruksa Real Esate, Sansiri, Quality Houses, Land & Houses and Supalai were the top five developers launching detached housing and townhouses.
Rattanathibet Road in Nonthaburi province recorded the highest number of new condominiums launched last year, with 10,700 units, followed by Huai Khwang-Chatuchak-Din Daeng (10,000) and Sukhumvit sois 101-107 (5,700) and Samut Prakan (5,900). The last areas two totalled 11,600 units located close to the extended Skytrain route from On Nuj to Samut Prakan province.
The number of newly registered residences in the first 10 months of last year was 89,000, up 23 per cent from the same period in 2011. Some 56 per cent of the new registrations were for homes in condominium projects, with the remainder in detached-housing and townhouse projects.
New residential mortgages in the first nine months of the year totalled Bt339 billion, some 16 per cent higher than in the same period a year earlier. The REIC estimates the full-year figure at Bt400 billion.
Meanwhile, residential prices during the year increased by between 3 and 6 per cent, depending on the type of housing.
The centre's research shows that condominium prices rose by an average of 5.69 per cent, while the cost of detached housing went up by 3.8 per cent.