An in-depth report reveals that it has been dropping for five consecutive quarters
According to the Property Market Index report published by DDproperty Thailand, the residential market price index has been plunging for five succeeding quarters since the first quarter of 2019 from 207 points down to 204 points, which corresponds to a one percent drop every quarter — its lowest level yet since the fourth quarter of 2017.
The COVID-19 pandemic has caused real estate prices to continuously drop, whereas economic uncertainties and soaring household debts have affected consumers’ purchasing power. As a result, developers are unable to raise their prices.
“Purchasing power has weakened considerably due to the Bank of Thailand’s (BoT) Loan-to-Value (LTV) regulations forcing buyers to part with a higher down payment together with the arrival of the COVID-19 pandemic. Therefore, developers are desperately trying to sell units with promotional campaigns and discounts,” explained Kamolpat Swaengkit, the country manager of DDproperty.
The condominium prices may seem stable compared to Q1 2020, but it has fallen substantially at six percent.
Prices of townhouses went through its biggest drop in the first quarter at two percent from Q4 2019 and three percent in the last two years.
Driven by consumers who are planning to reside instead of mere investors, single-detached homes rose by two percent compared to the previous quarter, a welcome addition that accumulated to a nine percent increase in the last two years.
The Falling Price Indexes extended to all price ranges. Developments that sustained the largest price drop were those valued below THB3.5 million (USD108,864), dropping at three percent compared to the preceding quarter and eight percent over the span of one year.
Meanwhile, developments valued between THB8 to 15 million went through a five percent price hike and properties worth more than THB15 million steadily grew at 15 percent over the last two years.
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