The price index of new condos and low-rise houses offered for sale in Greater Bangkok in the second quarter continued to rise for a sixth consecutive quarter, driven by higher land prices, construction costs and wages.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the price index of condos in the second quarter of 2024 was 156.9, up 1.2% year-on-year, while that of low-rise houses was 131.6, up 1.5%.
"The year-on-year rise of both has continued for six consecutive quarters since the first quarter of 2023," he said. "Key drivers were higher development costs, including land prices, construction material prices and labour wages."
These factors affected the prices of new residential supply launched during 2022-23.
To boost sales, most developers chose to offer free items like air conditioners, water pumps, water tanks and electricity meters, which accounted for 42%.
By category, the price index of single detached houses was 131.7, up 2% year-on-year. This rise has continued for eight consecutive quarters since the third quarter of 2022.
"In the second quarter of this year, we saw discounts in the prices of single detached houses, most of which were units priced at 10 million baht and above, as developers tried to reduce housing inventory," Mr Vichai added.
He said the majority of these units were in Min Buri-Nong Chok-Klong Sam Wa-Lat Krabang, followed by Lat Phrao-Bang Kapi-Wang Thonglang-Bung Kum-Saphan Sung-Kannayao and Phra Khanong-Bang Na-Suan Luang-Prawet.
In Nonthaburi, Pathum Thani and Samut Prakan, the price index of single detached houses saw the largest increase, rising by 2.9%.
This increase was most notable in Lam Luk Ka-Khlong Luang-Thanyaburi-Nong Sua, particularly for units priced between 3.01 and 5 million baht.
The second-largest increase was in Bang Phli-Bang Bo-Bang Sao Thong, followed by Bang Kruai-Bang Yai-Bang Bua Thong-Sai Noi. Both locations saw price rises for units priced between 5.01 and 7.5 million baht.
The price index for townhouses rose by 1.3% to 131.6, marking a consecutive increase since the first quarter of 2024, after falling for three consecutive quarters.
The key driver was that projects during those periods were built with older costs, and developers used promotions to drain the inventory.