The property market in Greater Bangkok will grow 10% next year after a 24% year-on-year decline forecast for this year, according to property consultant Agency for Real Estate Affairs.
The slowdown is based on the projected number of units available for sale, which will likely stand at 99,632.
By value, the decline will likely be 28% year-on-year, or 276.13 billion baht
This improves from an earlier prediction of more than 30%, on par with the rate seen in flood-hit 2011.
The trend has reversed since the May 22 coup brought back stability and confidence, said the consultant's president Sopon Pornchokchai.
"The market contraction helps prevent a bubble in newly launched supply. It is a consolidation year before growth resumes in 2015," he said.
During the first six months of the year, 36,184 units were sold, down 37% from the same period last year. In the same period, 212 projects were launched with a total of 49,816 units.
Of this number, 51% (25,291 units) were condo, 13,903 townhouses, 7,291 single houses and the rest other housing types.
Land prices in Greater Bangkok rose 3-5% in many locations while the average selling price of housing units dropped to 2.77 million baht a unit from 2.92 million baht, largely due to lower purchasing power.
"New houses used to start at 3 million baht but it was 10% lower in the first half to attract homebuyers," he said.
However, the lower selling prices came with smaller sizes due to higher construction costs.