The price index of new low-rise houses in Greater Bangkok declined in the first quarter of 2023 as developers aimed to boost sales from their inventories of single detached houses that were built earlier at a cheaper cost.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the quarter-on-quarter drop was primarily driven by decreasing prices of single detached houses priced over 10 million baht.
"The prices of single detached houses in the segment of more than 10 million baht were cut as developers wanted to boost sales and offered prices that matched purchasing power for real demand," he said.
"Most of these units were built previously and had cheaper costs."
In the first quarter of 2023, the price index of new low-rise houses in Bangkok, Nonthaburi, Samut Prakan and Pathum Thani was 128.3, down 1.5% from 130.2 in the fourth quarter of 2022 but a 0.8% increase from 127.3 in the first quarter of 2022.
The index for single detached houses was 127.1, down 3% from 131 in the fourth quarter of 2022 but up 1% from 125.8 in the first quarter of 2022.
For townhouses, the index stood at 129.7, up 0.3% from 129.3 in the fourth quarter of 2022 and up 0.5% from 129 in the first quarter of 2022, respectively.
In Bangkok, the price index of single detached houses dropped 1.2% quarter-on-quarter and 2.5% year-on-year, reaching 122.1, resulting from discounts offered on units priced above 10 million baht in areas where supply was abundant.
They included three zones comprising the Ratburana-Bang Khun Tien-Thung Khru-Bang Bon-Jom Thong zone, the Phra Khanong-Bang Na-Suan Luang-Prawet zone and the Lat Phrao-Bang Kapi-Wang Thonglang-Bung Kum-Saphan Sung-Kannayao zone.
In Nonthaburi, Samut Prakan and Pathum Thani, the price index of single detached houses fell 3.8% quarter-on-quarter to 129.5 which rose 2.9% from the same period of 2022.
Single detached houses in the three provinces had a pricing decline in units priced between 7.5-10 million baht, mainly in Bang Kruai-Bang Yai-Bang Bua Thong-Sai Noi-Muang-Pak Kret in Nonthaburi and Muang-Lat Lum Kaew-Sam Kok in Pathum Thani.
For condos, the price index in Bangkok, Nonthaburi and Samut Prakan in the first quarter of 2023 was 154.7, up 2% year-on-year and 2.9% quarter-on-quarter.
In Bangkok, the index was 157.7, up 2.9% year-on-year and 3.7% quarter-on-quarter as most of were launched recently with new higher prices.
Those of Samut Prakan and Nonthaburi dropped 1.8% year-on-year and 0.7% quarter-on-quarter because developers revised down the prices to boost sales of remaining unsold units launched years ago.
