The Real Estate Information Center (REIC) reports that the new housing price index for properties under sale in Q2 2023 shows that the index for new housing in Bangkok and its vicinity stands at 129.7, an increase of 1.9% compared to the same period last year. This also reflects a 1.1% increase compared to Q1 2023. Meanwhile, the overall index for new condominiums under sale in Bangkok and surrounding areas for Q2 2023 is 155.1 points, up 2.2% year-on-year and up 0.3% from the previous quarter, marking a continuous increase over the last two quarters. The overall index for new condominiums has risen more sharply than that of new housing.

Table 1: New Housing Price Index for Properties Under Sale in Bangkok - Surrounding Areas (Year 2012 = 100.0)

New Housing Price Index for Properties Under Sale (Single Houses and Townhouses)

Dr. Vichai Wiratkhapan, Acting Director of the Real Estate Information Center, Government Housing Bank revealed that the new housing price index for properties under sale in Bangkok and surrounding areas for Q2 2023 stands at 129.7, reflecting a 1.9% increase compared to the same period last year (YoY) when the index was 127.3. Compared to Q1 2023 (QoQ), the index also increased by 1.1%, indicating that housing prices have risen from last year and the previous quarter.

The increase in the new housing price index is largely attributed to new projects launched during 2021-2022, which faced higher development costs due to rising construction material prices, land costs, and labor expenses. Consequently, developers have had to adjust prices upwards. However, in Q2 2023, many developers employed promotional strategies to boost sales by offering various incentives such as free air conditioners, water pumps, water tanks, landscaping, and grass installation. A detailed breakdown reveals that:

Chart 1: New Housing Price Index for Properties Under Sale in Bangkok - Surrounding Areas (Year 2012 = 100.0)

The New Housing Price Index by Area in Bangkok stands at 127.9, an increase of 1.9% compared to the same period last year (YoY) and up 1.5% compared to the previous quarter (QoQ). Meanwhile, the three surrounding provinces (Nonthaburi, Pathum Thani, and Samut Prakan) have an index value of 130.5, an increase of 1.0% YoY and up 1.2% QoQ (see Table 1 and Charts 1-3).

The Single House Price Index in Bangkok and Surrounding Areas for Q2 2023 stands at 129.1, reflecting a 2.5% increase compared to the same period last year (YoY), marking a continuous increase over four quarters from Q3 2022 to Q2 2023, and up 1.6% compared to the previous quarter (QoQ). This increase is higher than the overall index for new housing, both year-on-year and quarter-on-quarter. In the Bangkok area, the index stands at 126.5, up 1.4% YoY and up 3.6% QoQ, indicating a clear upward trend for single houses in Bangkok.

In the three surrounding provinces (Nonthaburi, Pathum Thani, and Samut Prakan), the index stands at 130.1, reflecting a 3.0% increase YoY and up 0.5% QoQ. Notably, the price of single houses has shown a continuous increase over five quarters from Q2 2022 to Q2 2023 (see Table 2 and Charts 1-3).

Chart 2: Growth Rate of the New Housing Price Index for Properties Under Sale in Bangkok–Surrounding Areas Compared to the Same Period Last Year (YoY)

Chart 3: Growth Rate of the New Housing Price Index for Properties Under Sale in Bangkok–Surrounding Areas Compared to the Previous Quarter (QoQ)

The Townhouse Price Index in Bangkok – Surrounding Areas for Q2 2023 stands at 129.9, reflecting an increase of 0.8% compared to the same period last year (YoY) and up 0.2% compared to the previous quarter (QoQ). This marks a continuous increase over three quarters from Q4 2022 to Q2 2023. In Bangkok, the index stands at 128.8, up 2.1% YoY but down 0.5% QoQ. Nevertheless, townhouse prices are expected to trend upwards, as there has been a continuous increase compared to the same period last year over three quarters from Q4 2022 to Q2 2023. In the three surrounding provinces (Nonthaburi, Pathum Thani, and Samut Prakan), the index stands at 130.6, down 1.7% YoY but up 1.6% QoQ. Overall, the townhouse price index reflects that the prices are still lower than last year, but an upward adjustment in townhouse prices is beginning to be observed in Q2 2023 (see Table 3 and Charts 1-3).

Regarding promotional offers for new housing properties under sale this quarter, it was found that 39.4% were incentives such as free air conditioners, water pumps, water tanks, water and electricity meters, landscaping, and grass installation, which is an increase from the previous quarter's 38.7%. Following this, 37.8% offered free transfer fees, down from 38.1% in the previous quarter, and 22.9% provided cash discounts, down from 23.2% in the previous quarter (see Chart 4).

Table 2: Single House Price Index in Bangkok - Surrounding Areas (Year 2012 = 100.0)

Table 3: Townhouse Price Index in Bangkok - Surrounding Areas (Year 2012 = 100.0)

New Condominium Price Index for Properties Under Sale

The overall price index for new condominiums under sale in Bangkok and surrounding areas for Q2 2023 stands at 155.1 points, an increase of 2.2% compared to the same period last year (YoY) and up 0.3% compared to the previous quarter (QoQ). This marks a continuous increase over the last two quarters, with a notable upward trend in the price index for new condominiums in Bangkok, attributed to new projects completed in 2021-2022, which faced higher development costs due to rising construction material prices, land costs, and labor expenses. Consequently, prices have had to be adjusted upwards, similar to new housing. In contrast, the price index for condominiums in the surrounding provinces has been on a downward trend for three consecutive quarters from Q4 2022 to Q2 2023, primarily due to older projects launched before 2021, which have maintained their original production costs without increases in material prices or labor costs, and have seen price reductions to stimulate sales.

When analyzed by area, the price index for new condominiums under sale in Q2 2023 in Bangkok stands at 158.4 points, an increase of 3.1% YoY and up 0.4 QoQ, which is higher than the overall condominium index and has shown a continuous increase over two quarters from Q1 2023 to Q2 2023. Meanwhile, the two surrounding provinces (Samut Prakan and Nonthaburi) have an index value of 141.1 points, down 1.6% YoY and down 0.3% QoQ, marking a continuous decrease over three quarters from Q4 2022 to Q2 2023, both year-on-year and quarter-on-quarter (see Table 1 and Charts 1-2).

Chart 4: Promotional Offers for New Housing Properties Under Sale

In Q1 2023 - Q2 2023

For promotional offers for new condominiums under sale this quarter, it was found that the majority, 37.7%, were incentives, which is an increase from the previous quarter's 35.1%. Following this, cash discounts accounted for 34.7%, down from 39.9% in the previous quarter, and free transfer fee discounts accounted for 27.5%, up from 25.0% in the previous quarter (see Chart 3).