Real Estate Information Center, Government Housing Bank (REIC) has compiled a price index in the housing category consisting of 1. New housing price index for single-family homes and townhouses 2. New condominium price index for properties under sale during Q2/2022. REIC found interesting changes: the new housing price index for properties under sale in Bangkok and surrounding areas stands at 127.3, a decrease of -0.4% compared to the same period last year (YoY), marking a continuous decline for the sixth consecutive quarter since Q1 2021. Meanwhile, the new condominium price index for properties under sale in Bangkok and surrounding areas in Q2 2022 is at 151.8, down -0.1% compared to the same period last year (YoY), continuing a decline for the seventh consecutive quarter.

New Housing Price Index (Single-family Homes and Townhouses)

 The new housing price index for properties under sale in Bangkok and surrounding areas in Q2 2022 is at 127.3, down -0.4% compared to the same period last year (YoY), marking a continuous decline for the sixth consecutive quarter since Q1 2021. However, compared to the previous quarter (QoQ), the housing price index decreased by -0.01.

Dr. Vichai Wiratthakhan, Acting Director of the Real Estate Information Center at the Government Housing Bank, revealed that the continuously declining new housing price index is mainly due to projects that were launched before this quarter, where developers have adjusted prices to align with the purchasing power of buyers in the Real Demand group, which has decreased due to the economic downturn caused by the COVID-19 pandemic and rising interest rates and inflation.

In some areas, new housing prices have increased due to rising construction costs driven by the increased prices of building materials. Therefore, new projects currently under construction to replace the absorbed housing stock will see higher selling prices in line with increased costs.

When analyzing the housing price index by area, it was found that:

  • Bangkok has an index value of 125.5, down -0.1% compared to the same period last year (YoY), and down -0.6% compared to the previous quarter (QoQ).
  • 3 Surrounding Provinces have an index value of 129.2, up 0.4% compared to the same period last year (YoY), and up 0.6% compared to the previous quarter (QoQ).

   

      Table 1: New Housing Price Index for Properties Under Sale in Bangkok - Surrounding Areas (Year 2555 = 100.0)

          Source: Real Estate Information Center, Government Housing Bank

 

  1. Single-family Home Price Index

The single-family home price index in Bangkok and surrounding areas in Q2 2022 is at 125.9, down -0.1% compared to the same period last year (YoY), but up 0.1% compared to the previous quarter (QoQ).

  • Bangkok has an index value of 124.8, down -0.5% compared to the same period last year (YoY), and down -0.3% compared to the previous quarter (QoQ).
  • 3 Surrounding Provinces have an index value of 126.3, up 0.2% compared to the same period last year (YoY), and up 0.3% compared to the previous quarter (QoQ).

      Table 2: Single-family Home Price Index in Bangkok - Surrounding Areas (Year 2555 = 100.0)

          Source: Real Estate Information Center, Government Housing Bank

  1. Townhouse Price Index

The townhouse price index in Bangkok - surrounding areas in Q2 2022 is at 128.9, down -0.6% compared to the same period last year (YoY), and down -0.1% compared to the previous quarter (QoQ).

  • Bangkok has an index value of 126.1, down -1.3% compared to the same period last year (YoY), and down -0.8% compared to the previous quarter (QoQ).
  • 3 Surrounding Provinces have an index value of 132.9, up 0.8% compared to the same period last year (YoY), and up 1.0% compared to the previous quarter (QoQ).

      Table 3: Townhouse Price Index in Bangkok - Surrounding Areas (Year 2555 = 100.0)

          Source: Real Estate Information Center, Government Housing Bank

 

For promotional offers on new housing properties under sale this quarter, it was found that the majority, 39.1%, involved cash discounts, down from 45.7% in the previous quarter. Following that, 31.1% offered free transfer fees, an increase from 28.8% in the previous quarter, and 29.7% included giveaways such as complete furniture, free air conditioning, water and electricity meters, and curtains, slightly up from 28.6% in the previous quarter (see Chart 4).

 

Chart 4: Promotional Offers for New Housing Properties Under Sale

In Q1 2022 - Q2 2022

  Source: Real Estate Information Center, Government Housing Bank

For the new condominium price index for properties under sale in Bangkok - surrounding areas in Q2 2022, the index stands at 151.8, down -0.1% compared to the same period last year (YoY). The new condominium price index has now declined for the seventh consecutive quarter since Q4 2020. However, compared to the previous quarter (QoQ), the new condominium price index increased by 0.1. Additionally, it is noted that the new condominium price index in Bangkok is on an upward trend, indicating that new condominium prices are likely to rise in line with increased construction costs driven by rising material prices.

Overall, the new condominium prices continue to decline compared to the same period last year, partly due to the reduced purchasing power of foreign buyers, especially from China, who are still restricted from traveling abroad, as well as the diminished purchasing power among investors and speculators affected by the economic downturn from the COVID-19 pandemic.

 

The new condominium price index for properties under sale in Q2 2022, when analyzed by area, shows:

  • Bangkok has an index value of 153.6, up 0.1% compared to the same period last year (YoY), and up 0.2% compared to the previous quarter (QoQ).
  • 2 Surrounding Provinces have an index value of 143.4, down -0.8% compared to the same period last year (YoY), and down -0.5% compared to the previous quarter (QoQ).

 

Table 1: New Condominium Price Index for Properties Under Sale in Bangkok - Surrounding Areas (Year 2555 = 100.0)

             Source: Real Estate Information Center, Government Housing Bank

 

For promotional offers on new condominiums under sale this quarter, it was found that the majority, 46.9%, involved cash discounts, down from 53.5% in the previous quarter. The next most common promotional offer was giveaways, accounting for 31.0%, up from 24.3% in the previous quarter, and offering free transfer fees accounted for 22.2%, down from 22.3% in the previous quarter (see Chart 3).

 

Chart 3: Comparison of Promotional Offers for New Condominiums Under Sale

In Q1 2022 - Q2 2022