The Real Estate Information Center (REIC) of the Government Housing Bank (GHB) has reported on the housing price situation for the fourth quarter of 2024, indicating a continuous increase in the prices of new housing projects and condominiums for sale compared to the same period last year (YoY). The price of new housing projects rose by 0.8%, marking the ninth consecutive quarter of increase, while the price of new condominiums increased by 3.6%, continuing an upward trend for eight quarters.
This rise is attributed to higher costs, including land prices, construction materials, and labor, which have led to increased prices for newly launched housing projects. However, it is expected that the introduction of low-interest loan products by financial institutions will stimulate the housing market in early 2025, supported by the following factors that contributed to the increase in housing prices in Q4 2024:

  1. The index for new housing projects for sale in Bangkok and its vicinity in Q4 2024 stood at 131.4 points, reflecting a 0.8% increase compared to the same period last year (YoY). In Bangkok, the index rose by 2.3%, while the three surrounding provinces (Nonthaburi, Pathum Thani, and Samut Prakan) saw a decrease of 1.0%, primarily due to a price drop in the townhouse index. However, when categorized by housing type, the price of single-detached houses in Q4 2024 increased by 2.1% YoY, while townhouses saw a 0.3% increase. Additionally, promotional campaigns offering cash discounts reached 29.6% this quarter, up from 21.0% in the previous quarter, which is a significant factor influencing buyers' decisions.

In terms of single-detached houses in Bangkok, the highest price increases this quarter were observed in the Min Buri–Nong Chok–Lat Krabang area for properties priced over 10 million baht. In the three surrounding provinces, the highest price increases were in the Lam Luk Ka–Khlong Luang–Thanyaburi area for properties priced between 7.51 and 10 million baht. For townhouses in Bangkok, the highest price increases were in the Phra Khanong, Bang Na, Suan Luang, and Prawet areas for properties priced between 5.01 and 7.50 million baht. In the three surrounding provinces, the highest price increases for townhouses were in the Bang Kruai, Bang Yai, Bang Bua Thong, and Sai Noi areas for properties priced between 2.01 and 3.00 million baht.

  1. The index for new condominiums for sale in Q4 2024 in Bangkok and its vicinity was 159.9 points, reflecting a 3.6% increase YoY. This increase indicates higher project development costs, particularly land costs in areas with high public transport usage, such as the BTS Silom Line and MRT Blue Line. In Bangkok, the price increased by 3.4%, but the rate was lower than the 4.2% increase in the two surrounding provinces (Samut Prakan and Nonthaburi).

The highest price increases for condominiums in Bangkok this quarter were in the Huai Khwang–Chatuchak–Din Daeng area for properties priced between 3.01 and 5.00 million baht. In the two surrounding provinces, the highest price increases were in the Samut Prakan–Phra Pradaeng–Phra Samut Chedi area for properties priced between 2.01 and 3.00 million baht. Additionally, promotional campaigns for condominiums offering cash discounts reached 25.2% this quarter, up from 21.7% in the previous quarter, to expedite buyers' decisions, similar to the housing projects.

As for the standard construction cost index (HCCI) in Q4 2024, it was recorded at 139.9, reflecting a 4.0% increase YoY. This indicates a continuous rise in housing construction costs due to increases in material prices and labor costs. For instance, sanitary ware prices rose by 12.0%, tiles by 5.6%, electrical and plumbing equipment by 3.7%, wood and wood products by 2.2%, and other materials by 5.7%, driven by higher oil and energy prices in the global market. Labor costs also increased by 4.0.

Overall, the rising construction costs are pushing new housing prices upward, while purchasing power is declining due to slow economic growth. Therefore, state financial institutions, particularly the Government Housing Bank (GHB), are ready to implement government policies to provide low-interest loan projects for middle- and low-income earners, as well as young people starting their careers who do not yet own homes. It is anticipated that these low-interest housing loan projects will stimulate housing purchase decisions, positively impacting the housing market in early 2025.