The Real Estate Information Center of the Government Housing Bank reports that the housing price index in Bangkok and its surrounding areas shows a downward trend but is beginning to stabilize. The index for new housing projects currently for sale in Bangkok and the surrounding areas in Q4 2021 stands at 126.8, a decrease of -0.8% compared to the same period last year (YoY), marking a continuous decline for the fourth consecutive quarter. Compared to the previous quarter (QoQ), the index has also decreased.

The index for new housing projects has dropped by -0.3%, while the index for new condominiums currently for sale in Bangkok and the surrounding areas in Q4 2021 is at 151.2, down -0.5% YoY, marking a fifth consecutive quarter of decline. When compared to the previous quarter (QoQ), the index for new condominiums has decreased by -0.3%, continuing a downward trend for the third consecutive quarter.

Dr. Vichai Viratakphand, Inspector of the Bank and Acting Director of the Real Estate Information Center stated that the decline in the new housing price index reflects the impact of the fifth wave of COVID-19, particularly the Omicron variant, which has slowed the recovery of the Thai economy. As a result, developers have adapted to the situation by continuing to use marketing strategies that include price reductions to stimulate sales of new housing projects, as well as offering extended free occupancy promotions for the first 1 to 3 years, or up to 36 months, compared to previous promotions that offered free occupancy for 1 to 2 years. This aims to assist those looking to purchase homes now but facing financial constraints. Developers are also continuously offering promotions for both single-family homes and townhouses to expedite consumer purchasing decisions.

When breaking down the housing price index by area, it is found that:

  • Bangkok has an index value of 125.8, down -0.7% YoY, and down -0.3% QoQ.
  • Three surrounding provinces have an index value of 127.6, down -0.9% YoY, and down -0.4% QoQ (see Table 1 and Charts 1-3).

 

Single-Family Home Price Index

The single-family home price index in Bangkok and the surrounding areas in Q4 2021 is at 124.9, down -0.9% YoY, and down -0.5% QoQ.

  • Bangkok has an index value of 124.3, down -0.8% YoY, and down -0.6% QoQ.
  • Three surrounding provinces have an index value of 125.1, down -0.9% YoY, and down -0.4% QoQ (see Table 2 and Charts 1-3).

 

 

 

 

Townhouse Price Index

The townhouse price index in Bangkok and the surrounding areas in Q4 2021 is at 128.8, down -0.7% YoY, and down -0.2% QoQ.

  • Bangkok has an index value of 127.1, down -0.6% YoY, and down -0.2% QoQ.
  • Three surrounding provinces have an index value of 130.8, down -0.8% YoY, and down -0.3% QoQ (see Table 3 and Charts 1-3).

 

 

 

Regarding promotional offers for new housing projects currently for sale this quarter, it was found that the majority, 44.4%, consisted of freebies such as air conditioners, furniture, curtains, water pumps, water tanks, etc. Following that, 28.8% were cash discounts, and 26.7% were discounts on transfer fees and/or free maintenance fees (promotional offers for new housing projects in Q3 2021 mostly consisted of 37.7% freebies such as air conditioners, furniture, curtains, water pumps, water tanks, etc., followed by 35.9% cash discounts, and 26.4% discounts on transfer fees and/or free maintenance fees) (see Chart 4).

 

For the new condominium price index currently for sale in Bangkok and the surrounding areas in Q4 2021, it was found that the index stands at 151.2, down -0.5% YoY, marking a fifth consecutive quarter of decline. The index for new condominiums has decreased by -0.3% QoQ, continuing a downward trend for the third consecutive quarter.

The decline in the new condominium price index is attributed to the adjustments made by real estate developers affected by the fifth wave of COVID-19, particularly the Omicron variant, which has slowed the recovery of the Thai economy. It was found that most developers continue to use marketing strategies by offering promotions in the form of freebies, accounting for up to 45.0% of surveyed projects, which include furnishing the condominiums for immediate occupancy, as well as promotions offering free occupancy for up to 1 to 3 years, similar to the promotions for housing projects, to alleviate the financial burden on buyers and provide them time to plan their finances. Additionally, offering free transfer fees on the day of ownership transfer or cash discounts helps reduce buyers' expenses, which is one reason for the decline in new condominium prices and aims to expedite consumer purchasing decisions.

The new condominium price index currently for sale in Q4 2021 shows the following breakdown by area:

  • Bangkok has an index value of 152.9, down -0.3% YoY, and down -0.3% QoQ.
  • Two surrounding provinces have an index value of 143.1, down -1.2% YoY, and down -0.6% QoQ (see Table 1 and Charts 1-2).

 

"For promotional offers for new condominiums currently for sale this quarter, it was found that the majority, 45.0%, consisted of freebies such as furniture, appliances, etc. Following that, 28.3% were discounts on transfer fees, which increased from the previous quarter, and 26.7% were cash discounts or free occupancy according to the contract terms of each project, which also increased from the previous quarter to expedite and alleviate buyers' expenses."