Real Estate Information Center, Government Housing Bank (REIC) reported the index of new housing prices (single-detached houses and townhouses) currently for sale in Bangkok and surrounding areas for the fourth quarter of 2023 is at 130.3, an increase of 0.1% compared to the same period last year, which was at 130.2. This indicates that the overall price of horizontal residential properties has consistently risen throughout every quarter from Q1 2022 to Q4 2023. When comparing quarters, the index of new housing prices increased by 0.4%, marking three consecutive quarters of growth from Q2 2023 to Q4 2023, resulting in the index of new housing prices currently for sale in Q4 2023 being slightly higher than the same period in 2022.

Dr. Vichai Viratakapan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center stated that the rising costs of land, construction materials, and labor directly affect the construction costs of residential properties. This has led to an increase in the selling prices of housing developments launched in 2022-2023, causing the index of new housing prices to rise continuously.

Additionally, to stimulate sales of housing projects, in the last quarter of 2023, most developers employed promotional strategies to boost sales by offering numerous freebies such as free air conditioners, curtains, water pumps, water tanks, water meters, electricity meters, landscaping, and grass laying. Following this, they provided assistance with costs on the transfer day to ease the burden on buyers, while cash discounts have shown a continuous decline.

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

The index of single-detached houses in Bangkok and surrounding areas for Q4 2023 is at 133.8, an increase of 2.1% compared to the same period last year, marking six consecutive quarters of increase, and a 2.4% increase compared to the previous quarter.

When considering specific areas, Bangkok has an index of 127.7, an increase of 3.3% compared to the same period last year, but a decrease of -0.8% compared to the previous quarter. To stimulate the market at the end of 2023, most of the price reductions for single-detached houses are for high-end properties priced over 10 million baht.

In the three surrounding provinces, the index is at 136.7, an increase of 1.6% compared to the same period last year, and a 4.1% increase compared to the previous quarter. There has been a continuous increase in single-detached house prices compared to the same period last year for seven consecutive quarters from Q2 2022 to Q4 2023, particularly for projects launched in 2022-2023 due to rising costs from increased material prices.

In Q4 2023, the most significant price reductions for single-detached houses in Bangkok occurred in the Rat Burana-Bang Khun Thian-Thung Khru-Bang Bon-Chom Thong area, followed by the Lat Phrao-Bang Kapi-Wang Thonglang-Bueng Kum-Saphan Sung-Khan Na Yao and Phra Khanong-Bang Na-Suan Luang-Pravej areas.

In the three surrounding provinces, the areas with the most significant price increases include the Lam Luk Ka-Khlong Luang-Than Thaburi-Nong Suea area in the price range of 3.01 – 5.00 million baht, followed by the Bang Krui-Bang Yai-Bang Bua Thong-Sai Noi area in the price range of 5.01 – 7.50 million baht, and the Pathum Thani-Lad Lum Kaew-Sam Khok area for properties priced over 10 million baht.

For the townhouse price index in Bangkok and surrounding areas for Q4 2023, the index is at 128.7, a decrease of -0.5% compared to the same period last year and a -0.5% decrease compared to the previous quarter.

To stimulate the market and clear townhouse stock at the end of 2023, it was found that in Bangkok and surrounding areas, the most significant price reductions occurred in the Taling Chan-Bang Khae-Phasi Charoen-Nong Khaem-Tawiwat area in the price range of 3.01 – 5.00 million baht, followed by the Bang Khen-Sai Mai-Don Mueang-Lak Si area in the price range of 5.01 – 7.50 million baht, and the Lat Phrao-Bang Kapi-Wang Thonglang-Bueng Kum-Saphan Sung-Khan Na Yao area for properties priced over 10 million baht.

In the three surrounding provinces, the most significant price reductions were found in the Bang Krui-Bang Yai-Bang Bua Thong-Sai Noi area in the price range of 2.01 – 3.00 million baht, followed by the Bang Phli-Bang Bo-Bang Sao Thong area in the price range of 3.01 – 5.00 million baht, and the Lam Luk Ka-Khlong Luang-Than Thaburi-Nong Suea area in the price range of 1.51 – 2.00 million baht,” Dr. Vichai added.

Regarding promotional offers for new housing currently for sale in Q4/2023, it was found that the majority, 40.2%, are freebies such as free air conditioners, curtains, water pumps, water tanks, water meters, electricity meters, landscaping, and grass laying, which is a decrease from the previous quarter's 40.5%. Following that, 38.9% are discounts on transfer day costs, down from the previous quarter's 39%, and 20.9% are cash discounts, which have increased from the previous quarter's 20.4%.