THAILAND FIRST: Bangkok will see as much as 13 percent fewer new property launches this year.
Dr. Sopon Pornchokchai, President for the Agency for Real Estate Affairs (AREA), revealed his surprising prediction yesterday.
He said there will be a 6 percent declines in both the number of new projects that are expected to be launched during 2018, and a 6 percent decline in the combined value of all new launches.
However, he noted that the average price for each new unit will rise by 7 percent, implying that most new launches will be aimed away from the lower end of the Bangkok residential property market.
He said: “The shrinkage of the Bangkok housing markets [will be] due to the slow growth in the economy.”
“Although the Thai government has announced a new predicted economic growth rate of 4.1 percent, it is the lowest rate in the ASEAN Region (except for Brunei and Singapore where per capita income is between five and seven times higher than in Thailand),” he announced.
He added that the Thai economy is driven mainly by public investments in infrastructure, thus 4.1 percent is not the real growth enjoyed by the vast majority of people.
ThailandProperty.News, from past experiences, considers AREA to be one of the most independent and thorough research houses covering the entire Bangkok, and Thailand, property markets.