New Home Price Index for Sale in Q4 2023: Single-Family Homes in Bangkok Rise by 3.3%, Boosting Overall Index to 130.3

The Real Estate Information Center of the Government Housing Bank (REIC) reports that the index for new homes (single-family homes and townhouses) for sale in Bangkok and its vicinity for Q4 2023 stands at 130.3, reflecting a 0.1% increase compared to the same period last year (YoY), which had an index value of 130.2. This indicates that the prices of horizontal residential properties have consistently risen throughout 2023, from Q1 2022 to Q4 2023. When comparing quarter-on-quarter (QoQ), the new home price index increased by 0.4%, marking three consecutive quarters of growth from Q2 2023 to Q4 2023, resulting in the new home price index for sale in Q4 2023 being slightly higher than the same period in 2022.

Dr. Wichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, stated, "The primary reason for the continuous increase in the new home price index is mainly due to rising construction costs influenced by several factors, such as land prices, construction material costs, and labor costs, all of which directly affect the overall construction costs of residential properties. This leads to higher selling prices for residential developments launched in 2022-2023 due to increased costs."

"Additionally, to stimulate sales of housing projects, it was found that in the last quarter of 2023, most developers employed promotional strategies to boost sales by offering the most freebies, such as free air conditioners, curtains, water pumps, water tanks, water meters, electricity meters, landscaping, and grass planting. Following that, they provided assistance with transfer day expenses to ease the burden on buyers, while cash discounts have been steadily declining."

Table 1 New Home Price Index for Sale in Bangkok - Vicinity (Base Year 2012 = 100.0)

Source: Real Estate Information Center, Government Housing Bank

When analyzing the new home price index by area, it was found that new projects in Bangkok have an index value of 127.7, which is a 1.3% increase compared to the same period last year (YoY), but a -0.8% decrease compared to the previous quarter (QoQ). Meanwhile, in the three neighboring provinces (Nonthaburi, Pathum Thani, and Samut Prakan), the index value is 131.5, reflecting a -0.8% decrease compared to the same period last year (YoY), but a 1.3% increase compared to the previous quarter (QoQ). This shows that when compared to the previous quarter, the new home prices for sale in the three neighboring provinces are a significant factor contributing to the overall index increase.

Furthermore, when considering the type of residence, the single-family home price index in Bangkok and its vicinity for Q4 2023 stands at 133.8, which is a 2.1% increase compared to the same period last year (YoY), marking a continuous increase for 6 quarters from Q3 2022 to Q4 2023. It also shows a 2.4% increase compared to the previous quarter (QoQ), continuing an upward trend for 3 quarters from Q2 2023 to Q4 2023.

When analyzed by area, Bangkok has an index value of 127.7, which is a 3.3% increase compared to the same period last year (YoY), but a -0.8% decrease compared to the previous quarter (QoQ). To stimulate the market at the end of 2023, the prices of single-family homes have been reduced, particularly for high-priced homes above 10 million baht. In contrast, the three neighboring provinces have an index value of 136.7, which is a 1.6% increase compared to the same period last year (YoY) and a 4.1% increase compared to the previous quarter (QoQ). There has been a continuous increase in single-family home prices compared to the same period last year for 7 quarters from Q2 2022 to Q4 2023, especially for projects launched in 2022-2023 due to higher costs from increased construction material prices.

Dr. Wichai noted that in Q4 2023, the most significant price reductions for single-family homes occurred in the areas of Rat Burana, Bang Khun Thian, Thung Khru, Bang Bon, and Chom Thong, followed by Lat Phrao, Bang Kapi, Wang Thonglang, Bueng Kum, Saphan Sung, Khan Na Yao, and Phra Khanong, Bang Na, Suan Luang, and Prawet. In the three neighboring provinces, the areas with the most significant price increases included Lam Luk Ka, Khlong Luang, Thanyaburi, and Nong Suea in the price range of 3.01 – 5.00 million baht, followed by Bang Krui, Bang Yai, Bang Bua Thong, and Sai Noi in the price range of 5.01 – 7.50 million baht, and Pathum Thani, Lat Lum Kaeo, and Sam Khok in the price range of over 10 million baht.

Table 2 Single-Family Home Price Index in Bangkok - Vicinity (Base Year 2012 = 100.0)

Source: Real Estate Information Center, Government Housing Bank

For the townhouse price index in Bangkok - Vicinity for Q4 2023, the index value is 128.7, reflecting a -0.5% decrease compared to the same period last year (YoY) and a -0.5% decrease compared to the previous quarter (QoQ).

In Bangkok, the index value is 127.6, which is a -0.5% decrease compared to the same period last year (YoY) and a -0.9% decrease compared to the previous quarter (QoQ). There has been a continuous decline in the price index for three consecutive quarters from Q2 2023 to Q4 2023, primarily for older projects from 2021, with production costs remaining at the original levels. For the three neighboring provinces (Nonthaburi, Pathum Thani, and Samut Prakan), the index value is 129.5, reflecting a -0.3% decrease compared to the same period last year (YoY) but a 0.2% increase compared to the previous quarter (QoQ).

The townhouse price index indicates that overall townhouse prices have slowed down compared to the previous year. If we compare the average index values for 2022 and 2023, townhouse prices in the three neighboring provinces have decreased by -1.0%, possibly due to land prices in the neighboring provinces being lower than in Bangkok, allowing developers to reduce prices to align with consumer purchasing power.

"To stimulate the market and clear townhouse inventory at the end of 2023, it was found that in Bangkok and its vicinity, the most significant price reductions occurred in the areas of Taling Chan, Bang Khae, Phasi Charoen, Nong Khaem, and Thawi Watthana in the price range of 3.01 – 5.00 million baht. Following that, reductions were noted in the areas of Bang Khen, Sai Mai, Don Mueang, and Lak Si in the price range of 5.01 – 7.50 million baht, and in Lat Phrao, Bang Kapi, Wang Thonglang, Bueng Kum, Saphan Sung, and Khan Na Yao in the price range of over 10 million baht. In the three neighboring provinces, the most significant price reductions were found in the areas of Bang Krui, Bang Yai, Bang Bua Thong, and Sai Noi in the price range of 2.01 – 3.00 million baht, followed by Bang Plee, Bang Bo, and Bang Sao Thong in the price range of 3.01 – 5.00 million baht, and in Lam Luk Ka, Khlong Luang, Thanyaburi, and Nong Suea in the price range of 1.51 – 2.00 million baht." Dr. Wichai added.

Table 3 Townhouse Price Index in Bangkok - Vicinity (Base Year 2012 = 100.0)

Source: Real Estate Information Center, Government Housing Bank

Chart 1 New Home Price Index for Sale in Bangkok - Vicinity (Base Year 2012 = 100.0)

Source: Real Estate Information Center, Government Housing Bank

Chart 2 Growth Rate of New Home Price Index for Sale in Bangkok - Vicinity Compared to the Same Period Last Year (YoY)

Source: Real Estate Information Center, Government Housing Bank

Chart 3 Growth Rate of New Home Price Index for Sale in Bangkok - Vicinity Compared to the Previous Quarter (QoQ)

Source: Real Estate Information Center, Government Housing Bank

For promotional items for new homes for sale in Q4 2023, it was found that the majority, 40.2%, were freebies such as free air conditioners, curtains, water pumps, water tanks, water meters, electricity meters, landscaping, and grass planting, which is a decrease from 40.5% in the previous quarter. Following that, 38.9% were discounts on transfer day expenses, down from 39.0% in the previous quarter, and 20.9% were cash discounts, which increased from 20.4% in the previous quarter.