thailand maybe late comer to asian housing boom
News Posted On: 19 September 2011
Property prices in Thailand are increasing rapidly. According to the Thai price index the price of a single detached house increased by 12.16% between June 2010 and June 2011. This was a rise of 7.75% after inflation.
Thailand has had a raw deal from the financial crisis. It's property market boom ended in 2004, after which point prices were largely stable. With the exception of course being the Thai islands of Koh Samui and Phuket which saw villa prices rise by 200% in the 2 years ending 2008.
Despite the stability in the core residential market, and the fact that other Asian emerging markets were seeing exceptional growth in their property markets, Thai property prices were hit hard by the financial crisis. With falls throughout 2009 and 2010 including a 16% drop between the third quarter of 2009 and the first quarter of 2010. Now, according to the data we could be seeing the first signs that Thailand is set to be a latecomer to the Asian housing boom party.
From June 2010 to June 2011, the average price of a townhouse increased by 6.6%, and residential land prices increased by 13.4%.
During the second quarter of this year around 11,000 new homes were launched throughout the country, a 9.6 increase on the previous quarter. Most of these launches are for homes in the low to medium priced market, and unit sizes have tended to become smaller due to the rising cost of land.
More than 36,000 condominium units are to be added to Bangkok's current stock of 304,000 condos by the end of this year -- the highest figure since the Asian financial crisis in 1997. There are worries that this could cause an oversupply, but most believe that the growing economy and population will absorb it bringing further growth in the economy.
The property market here is in pretty good shape, the government introduced tax breaks for homebuyers in 2009 to help boost the property market, and the recent election has created an atmosphere of political stability.
View property for sale in Thailand
Article written by Liam Bailey
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