Housing And Land Price Index Rises By 6-8% Last Year

[george]

Housing and land price index rises by 6-8% last year

BANGKOK: -- The index on housing and land prices in greater Bangkok last year increased by 6-8 per cent from the previous year with a single house price enjoying the highest rise of 8 per cent, according to the Government Housing Bank’s Real Estate Information Center.

The center revealed the single house price index stood at 154.4 points, up 8 per cent from the year before, the townhouse price index at 144.2, up 6 per cent, and the land price index at 155.3, up 6.3 per cent.

The index on housing and land prices surged to the highest level in the third quarter of last year with those of the single house, townhouse, and land prices rising by 9, 6.8, and 7.5 per cent, before weakening slightly in the fourth quarter.

The center said the number of completely built houses and condominiums last year total 37,435 units, down 12.7 per cent from the previous year.

Of this, 23,453 units are single houses, down 13.9 per cent, 9,478 units are condominiums, down 17.5 per cent, 4,389 units are townhouses and commercial buildings, down 36.3 per cent and 115 units are twin houses, down 13.9 per cent.

The fourth quarter of last year saw the houses and condominiums being built in largest number.

Previously, Prasong Ourlan, Prisident of the Housing Business Association and Athip Peechanont, President of Thai Condominium Association, shared a common view that prices of houses and condominiums this year would rise by around 5-10 per cent due to higher costs of construction, inflation rate hike, and economic growth estimate of 4-5 per cent.

They also forecast the property market this year would expand 5-10 per cent since the demand for houses among consumers still exists although their buying behavior had changed.

--TNA 2006-04-24