The single detached house market in Greater Bangkok has been robust since last year, resulting in a year-on-year increase in the price index for five consecutive quarters as demand is strong.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the price index for new single detached houses available for sale in Greater Bangkok continued to rise in the third quarter of 2023.
After dropping from 131.0 in the fourth quarter of last year to 127.1 in the first quarter of 2023, the price index improved to 129.1 and 130.7 in the second and third quarters.
Year-on-year changes have been positive from the third quarter of 2022 to the third quarter of this year, marking consecutive growth for five quarters, he said.
In the second half of 2022, new sales of single detached houses in Greater Bangkok reached the highest number and value in several years, surpassing the pre-pandemic performance of 2018, with 7,133 units worth 98.3 billion baht.
This was a significant increase from 4,053 units worth 44.2 billion baht in the first half of 2021, 4,080 units worth 40.8 billion baht in the second half of 2021, and 5,592 units worth 71.8 billion in the first half of 2022.
Although sales slowed to 5,940 units worth 68.9 billion baht in the first half of 2023, the absorption rate per month remained higher than the average of the low-rise housing market, which includes townhouses, duplex houses and shophouses, at 3.1% and 2.9%, respectively.
In the third quarter of 2023, the price index of single detached houses had the largest year-on-year increase at 2.6%, compared with 1.8% for townhouses.
The overall price index for new low-rise houses (single detached houses and townhouses) in Greater Bangkok was 129.8, a year-on-year increase of 2.1% and a quarter-on-quarter increase of 0.1%.
"The increase in the price index of low-rise houses was mainly attributed to escalating construction costs, influenced by various factors, including land prices, building material prices and labour costs," said Mr Vichai.
As a consequence, the offering prices for new low-rise housing supply launched in 2022-23 have risen in line with these increased costs, he said.
To increase sales in the third quarter, giveaways such as free air conditioners or gardening services were the most popular campaigns, accounting for 40.5%, up from 39.4% in the second quarter.
Another tactic was waiver of expenses being paid on the transfer date, used by 39% of sellers, followed by cash discounts (22.9%).
REIC surveyed the price index of new low-rise houses, excluding second-hand units, available for sale in Bangkok and three neighbouring provinces comprising Nonthaburi, Pathum Thani and Samut Prakan.
The centre used the purposive sampling method to create the price index.
The sale prices used to compile the price index were actual sale prices, with the value of promotional items deducted from the listed selling prices.
The prices in 2012 are used as the base year.