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Price index for condos and low-rise houses on the rise in the second quarter

Price index for condos and low-rise houses on the rise in the second quarter

The price index of new condos and low-rise houses being offered for sale in Greater Bangkok increased for the sixth quarter in a row in the second quarter, mainly due to soaring land and construction costs, as well as higher wages.

Acting director-general of the Real Estate Information Center (REIC), Vichai Viratkapan, mentioned that the price index for condos rose by 1.2% year-on-year to 156.9, while low-rise houses increased by 1.5% to 131.6.

This upward trend has persisted for six consecutive quarters since early 2023, largely driven by escalating development expenses such as land prices, construction materials, and labor wages.

To stimulate sales, many developers opted to offer incentives like free air conditioners, water pumps, water tanks, and electricity meters, which constituted 42% of the deals.

Single detached houses saw their price index climb by 2% year-on-year to 131.7, sustaining an eight-quarter ascent since late 2022. In the second quarter of 2024, discounts were noticed in the prices of higher-end single detached houses to decrease stock levels, with the most impacted areas including Min Buri, Nong Chok, Klong Sam Wa, Lat Krabang, Lat Phrao, Bang Kapi, Wang Thonglang, Bung Kum, Saphan Sung, Kannayao, and Phra Khanong.

Nonthaburi, Pathum Thani, and Samut Prakan experienced the highest spike in the price index of single detached houses, rising by 2.9%, particularly notable in Lam Luk Ka, Khlong Luang, Thanyaburi, Nong Sua for units priced between 3.01 and 5 million baht.

The price index for townhouses saw a 1.3% increase to 131.6, marking a reversal in trend after falling for three consecutive quarters, as older-cost projects were completed during those periods, prompting developers to use promotions to clear inventory.

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