Dr. Vichai Wiratkhapan, Acting Director of the Real Estate Information Center, revealed the overall situation of the housing market during the second quarter of 2017, stating that there has been a slowdown in the number of units in terms of both supply and demand. However, new housing launches have increased in number, total value, and average price per unit. Buyers with lower incomes have limited purchasing power due to economic conditions and stricter lending policies from financial institutions, despite a high demand for housing.

         In this quarter, 73 new housing projects were launched in Bangkok and its vicinity, comprising 28,051 units. This represents a 52.3% increase compared to the same period in 2016, which had 97 projects and 18,421 units. The total project value rose by 61.9% to 106,073 million baht from 65,530 million baht in the same period last year, indicating that new projects in 2017 are larger and priced higher than those launched in the previous year.

         The new housing projects are divided into housing estates and condominium projects. The housing estates saw 40 new projects with 11,371 units and a total project value of 43,937 million baht, marking a 17.0% increase in units and a 21.3% increase in value compared to the same period in 2016, which had 72 projects with 9,717 units valued at 36,230 million baht. Listed companies on the stock exchange launched 33 new projects with 10,180 units, accounting for 89.5% of the total new housing estate units launched this quarter, an increase of 71.8% compared to the same period in 2016.

         As for the new condominium projects in the second quarter of 2017, there were 33 projects with 16,680 units and a total project value of 62,011 million baht. The number of units increased by 91.6% and the value surged by 111.6% compared to the same period in 2016, which had 25 projects with 8,704 units valued at 29,300 million baht. Listed companies on the stock exchange launched 14 new projects with 7,477 units, accounting for 88.5% of the total new condominium units launched this quarter, an increase of 20.3% compared to the same period in 2016.

         In this quarter, listed companies on the stock exchange launched 55 projects with 23,163 units, accounting for 82.4% of the total new housing units launched, an increase of 90.8% compared to the same period in 2016, when 41 projects with 12,138 units were launched.

         For the trend of new housing projects in Bangkok and its vicinity in 2017, it is expected that approximately 108,709 units will be launched, a 2.9% increase from 2016, with an estimated range of about 97,900 to 119,700 units.

         Newly registered completed housing units in Bangkok and its vicinity (Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon, Nakhon Pathom) during the second quarter of 2017 totaled 27,151 units, a 40.2% increase compared to the same period in 2016, which had 19,366 units.

         Among the newly registered completed housing units, condominiums accounted for the largest share with 15,805 units, representing 58.2% of all newly registered completed units. This was followed by single-detached houses with 6,727 units (24.8%), townhouses with 3,180 units (11.7%), commercial buildings with residential units totaling 885 units (3.3%), and duplex houses with 554 units (2.0%).

         The trend for newly registered completed housing units in Bangkok and its vicinity in 2017 is expected to be around 111,300 units, a decrease of 12.0% from 2016, with an estimated range of about 100,200 to 122,500 units.

         The transfer of property ownership in Bangkok and its vicinity during the second quarter of 2017 amounted to 39,597 units, valued at 103,560 million baht. This represents a 25.3% decrease in units and a 16.3% decrease in value compared to the same period in 2016, which had 53,030 units valued at 123,766 million baht. This decline is attributed to the real estate stimulus measures in April 2016, which was the last month of the fee reduction for property transfer, leading to a rush in property transfers.

         Dr. Vichai Wiratkhapan further stated that in the second quarter of 2017, the highest number of property transfers was for condominiums, totaling 19,600 units, accounting for 49.5% of all transfers. This was followed by townhouses with 11,980 units (30.3%), single-detached houses with 5,174 units (13.1%), duplex houses with 1,472 units (3.7%), and commercial buildings with residential units totaling 1,371 units (3.5%).

         The transfer of new houses or houses transferred from legal entities totaled 25,151 units, while the transfer of second-hand houses or houses transferred from individuals amounted to 14,446 units, resulting in a ratio of new house transfers to second-hand house transfers in the second quarter of 2017 being 64:36.

         For the trend of property transfer volumes in Bangkok and its vicinity in 2017, it is expected that approximately 154,500 units will be transferred, a decrease of 11.9% from 2016, with an estimated range of about 139,000 to 170,000 units, and a total value of approximately 416,000 million baht, down 6.3% from 2016, with an estimated range of about 374,500 to 457,650 million baht.

         Personal loans nationwide in the second quarter of 2017 amounted to 147,491 million baht, a decrease of 4.3% compared to the same period in 2016, which had a value of 154,171 million baht. This decline is due to the real estate stimulus measures in April 2016, which was the last month of the fee reduction for property transfer, leading to an increase in transactions and loan applications during that period.

         For the trend of personal loans nationwide in 2017, it is expected to be around 566,300 million baht, a decrease of 3.4% from 2016, with an estimated range of about 558,000 to 602,700 million baht. The outstanding housing loans for individuals as of the second quarter of 2017 amounted to 3,391,428 million baht, an increase of 5.4% compared to the same period in 2016.

         However, the trend for overall personal loans nationwide in 2017 is expected to reach approximately 3,441,100 million baht, an increase of 3.5% from 2016, with an estimated range of about 3,425,500 to 3,464,500 million baht.

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