The property measures that commenced last month helped boost townhouse sales in April, while a possible rise in the daily minimum wage needs to be weighed against a drop in the price of construction materials, according to SET-listed developer AP Thailand.
Maytha Rakthum, chief of the developer's twin home and town home business group, said the positive impact from the property measures, which were approved by the cabinet on April 9, was significant and would tend to improve the market for the rest of this year.
"The measures help our target customers because the majority of our townhouse buyers fall within pricing segments below 7 million baht a unit," he said.
After the Songkran festivities, AP launched two new townhouse projects in two locations -- one in Pracha Uthit Soi 60, and the other in Phetkasem Soi 81.
Unit prices have been set at between 3-6 million baht and 1.9-3.5 million baht, respectively.
The site in Pracha Uthit Soi 60 recorded sales of 300 million baht during the launch week, while sales at the project in Phetkasem Soi 81 reached more than 200 million baht, compared with sales of 200 million baht during the launch week of this project in the fourth quarter of 2023.
"This is a good sign as we haven't seen sales of more than 200 million baht during the first week for a long time," he said. "The property measures help stimulate the residential market."
One of the measures boosting the residential market is the reduction of transfer and mortgage fees for units priced at 7 million baht or below, an increase from the previous limit of 3 million baht and below.
There is also a mortgage loan with a fixed interest rate of 3% for five years available for units priced at 3 million baht or below, offered by the Government Housing Bank.
Miniature townhouse models are displayed at the Baan Lae Suan fair held in March at Bitec. (Photo: Wichan Charoenkiatpakul)
"However, we need to monitor mortgage loan approvals again as interest rates remain a key issue," Mr Maytha noted.
He said townhouses priced between 2-3 million baht per unit in locations near industrial estates were robust as buyers were salaried people, many of whom had shifted from renting to buying at at a similar monthly payment rate of around 4,000 baht.
At present, AP has townhouse projects with units available for sale in key industrial locations such as Lat Krabang in Bangkok and Bang Pu in Samut Prakan. It aims to launch a new townhouse project in Pathum Thani's Navanakorn in the near future.
"A potential increase in the minimum daily wage, which will impact housing prices, may be offset by the decrease in construction material prices, particularly steel, which we will need to factor in again."