Housing Price Index in Thailand Over 10 Years

              "As time goes by, houses become more expensive" seems to be a true statement. But did you know that "single-family homes" are the type of real estate that has experienced the least price fluctuation compared to the Housing Price Index of other property types, which include townhouses with land, condominiums, and even land itself?

                Key insights from the statistics on the Housing Price Index from commercial bank loan data from the Bank of Thailand

                TerraBKK Research has found interesting data on the Housing Price Index that reflects changes in the prices of properties being traded in the market. This is based on loan data where the property is used as collateral for the purpose of purchasing new and second-hand housing from 17 registered commercial banks in Thailand, specifically in the Bangkok metropolitan area and surrounding provinces (Samut Prakan, Nonthaburi, Pathum Thani, Nakhon Pathom, and Samut Sakhon).

               "Condominiums" have the highest price adjustment in the Housing Price Index, increasing by 83.7% over the past 10 years, from a base index of 100 (January 2009) to an index of 183.7 (February 2019), averaging an increase of about 8.4% per year. The initial growth of the condominium price index typically saw new tens every two years, but after 2014, the changes accelerated. After reaching a base of 170 at the end of 2016, it established a new base at 180 by the end of 2018. The condominium data used for the index includes properties valued between 300,000 and 75,000,000 Baht, with a maximum of 60 floors and usable areas ranging from 20 to 700 square meters.

              “Land” has become a Housing Price Index that has increased more than single-family homes and townhouses over the past 10 years, rising by about 77.7%. The latest figure in February 2019 was 177.7, indicating an average increase of about 7.8% per year. It can be observed that land prices increased frequently between 2013 and 2016, moving from a base of 130 to 170 and continuing to rise to the present.

              “Townhouses with land” rank third in the Housing Price Index, with an average growth rate of 5.6% per year, or a total growth of 55.8% over the past 10 years (February 2019 = 155.8). The price of townhouses increased rapidly between 2012 and 2014, establishing a new base of 150 again in 2018. The index data comes from properties priced between 300,000 and 40,000,000 Baht, with a maximum of 3 floors on land sizes of 16-45 square wah and usable areas of 60-400 square meters.

               "Single-family homes with land" have the least price adjustment in the Housing Price Index, with a growth of 41.9% over the past 10 years (February 2019 = 141.9), or an average growth of 4.2% per year. A new base of 140 was established at the end of 2018. The properties used to calculate the index for single-family homes with land are valued between 500,000 and 90,000,000 Baht, with usable areas of 90-1,300 square meters on land sizes of 50-1,000 square wah. ---TerraBKK

Article by: TerraBKK Knowledge Base
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