Condo Prices In Thailand Begin Recovery Upon Easing Of Political Turmoil

[webfact]

Condo prices begin recovery upon easing of political turmoil

BANGKOK, Jan 12 -- Condominium prices have begun recovering after the political turmoil, which turned violent in March to May last year, eased considerably, according to the Real Estate Information Centre (REIC).

REIC Director-General Samma Kitsin revealed the condominium price index conducted in the second half of last year to gauge condo price movements, particularly in metropolitan Bangkok, stood at 105.59, up 4.16 points from the first half of 2010, and up 5.59 points from the same period of 2009.

Overall, condominium prices had edged up in all price levels since the political situation had improved.

Classified by price range, the index on condominium prices below 50,000 baht per square metre stood at 110.17 up 8.70 points from the first half of 2010 and 10.17 points from the corresponding period in 2009.

The index on condominium prices between 50,000-79,999 baht per square metre stood at 106.81, up 3.39 points from the first half of last year and 6.81 points from the same period in 2009.

The index on condominium prices starting at 80,000 baht per square metre or more stood at 103.32 up 3.61 points from the first half of last year and 3.32 points from the same period 2009.

“It is noted that condominiums priced at less than 50,000 baht per square metre increased against the inflation rate and in tandem with higher incomes earned by buyers. Condominium prices between 50,000-79,999 baht per square metre rose at a close rate to the first half of last year,” he said.

Condominium prices at more than 80,000 baht per square metre edged up from the first half of 2010 after they shrank because condominiums located downtown had been affected by the political unrest, said Mr Samma. (MCOT online news)

-- TNA 2011-01-12

[trogers]

I disagree on the conclusion that 'Overall, condominium prices had edged up in all price levels since the political situation had improved'.

In my view, price increases is due mainly to easing of deposit requirements, and BoT is acting on it.

[webfact]

Condominium prices likely to rise by 20-25% this year

BANGKOK, Jan 13 – Condominium prices are expected to rise further by 20-25 per cent this year with the number of condominiums seeking new registration set to increase by more than 100, according to the Treasury Department.

Director-General Vinai Vittavasgarnvej said the department had valuated 4,600 registered condominiums nationwide, most of which are located in Bangkok and its environs, and provinces where there are many tourist sites.

The survey found condominiums with the highest prices now are located in the Sukumvit area, with unit price over 200,000 baht per square metre. It is projected that over 100 condominiums will seek registration this year. Most are located along the elevated and underground mass transit routes, and electric train routes and economic zones.

Mr Vinai said Treasury Department personnel have been sent to assess land prices in all provinces nationwide as part of an overall survey reviewing and re-valuating them for adoption in the 2012-2015 accounting period, set to begin Jan 1, next year.

"Overall, prices will rise by 20-25 per cent” he said.

Last year's survey of condominium prices found that the number of condominiums seeking registration in Bangkok and provincial areas rose by 262, most of which are located in Bangkok, Phuket, Chonburi, Prachuap Khiri Khan, Samut Prakarn, and Nonthaburi. (MCOT online news)

-- TNA 2011-01-13

[joefromdc]

I don't believe that. And after hearing the head of the Thai national bank say at the beginning of 2010 that Thailand's economy would grow by 45% that year (even if a decimal point was missing, 4.5%, I'd still think the forecast optimistic) has lost any lingering respect I had for Thailand's economists. This sounds to me like they're trying to artificially pump up expectations to sell more condos.