Real Estate Information Center, Government Housing Bank has compiled the housing price index, which includes the new housing development price index (single houses and townhouses) and the new condominium price index currently for sale in Q4 of 2022. It was found that an interesting change is that the new housing development price index for sale in Bangkok and its vicinity in Q4 of 2022 increased by 2.7%, marking a rise after the index had remained stable for three consecutive quarters since Q1 of 2022.

Meanwhile, the new condominium price index for sale in Bangkok and its vicinity in Q4 of 2022 decreased by -0.6%. This is because developers increased their sales stimulation for housing developments and condominiums in this quarter by using free cost promotions at the time of transfer more frequently.

Dr. Vichai Wiratthakhan, Acting Director of the Real Estate Information Center, Government Housing Bank stated that the new housing development price index has increased to 130.2, which is a 2.7% increase compared to the same period last year (YoY) at 126.8, and a 2.4% increase compared to the previous quarter (QoQ) at 127.2. This increase is primarily due to new projects launched for sale in this quarter, most of which have higher construction costs as the prices of construction materials continue to rise in almost all categories except for tiles compared to the same period last year, leading developers to slightly adjust their prices upward.

When breaking down the new housing development price index by area, it was found that:

  • Bangkok has an index value of 126.1, an increase of 0.2% compared to the same period last year (YoY), and also an increase of 0.2% compared to the previous quarter (QoQ).
  • Three surrounding provinces (Samut Prakan, Nonthaburi, and Pathum Thani) have an index value of 132.5, an increase of 3.8% compared to the same period last year (YoY), but a decrease of 3.4% compared to the previous quarter (QoQ).

Single House Price Index

For the single house price index in Bangkok and its vicinity in Q4 of 2022, the index value is 131.0, an increase of 4.9% compared to the same period last year (YoY) and an increase of 2.8% compared to the previous quarter (QoQ). When categorized by area, it can be seen that the single house price index has increased significantly in the three surrounding provinces, while the index in Bangkok has slightly decreased as follows:

  • Bangkok has an index value of 123.6, a decrease of -0.6 compared to the same period last year (YoY) and a decrease of -2.2 compared to the previous quarter (QoQ) to accelerate the sale of single houses that have reduced prices, mostly priced over 10 million baht, located in the Phra Khanong-Bang Na-Suan Luang-Pravet area.
  • Three surrounding provinces have an index value of 134.6, an increase of 7.6 compared to the same period last year (YoY) and an increase of 5.3 compared to the previous quarter (QoQ).

Townhouse Price Index

The townhouse price index in Bangkok and its vicinity in Q4 of 2022 has an index value of 129.3, an increase of 0.4% compared to the same period last year (YoY) and an increase of 1.8% compared to the previous quarter (QoQ).

  • Bangkok has an index value of 128.2, an increase of 0.9% compared to the same period last year (YoY) and an increase of 2.2% compared to the previous quarter (QoQ).
  • Three surrounding provinces have an index value of 129.9, a decrease of -0.7% compared to the same period last year (YoY), but an increase of 1.1% compared to the previous quarter (QoQ).

For the promotional items for new housing developments currently for sale in this quarter, it was found that the majority, 40.4%, are free costs at the time of transfer, which is an increase from the previous quarter, which had a proportion of 34.2%. Following that, 36.2% offered freebies such as free air conditioners, water pumps, water tanks, water meters, electricity meters, landscaping, and grass planting, an increase from the previous quarter which had a proportion of 29.9%. Meanwhile, 23.4% offered cash discounts, a decrease from the previous quarter which had a proportion of 35.9% (see Chart 4).

Chart 4: Promotional Items for New Housing Developments Currently for Sale in Q3 2022 - Q4 2022

New Condominium Price Index

For the overall new condominium price index currently for sale in Bangkok and its vicinity in Q4 2022 has an index value of 150.3, a decrease of -0.6% compared to the same period last year (YoY) and a decrease of -1.9% compared to the previous quarter (QoQ). It is noted that in the last quarter of 2022, the continued decline in condominium prices may be due to developers using cash discount strategies the most to accelerate sales and transfer ownership before the LTV relaxation measures end on December 31, 2022. Most of these are older condominium projects completed and launched for sale before 2021, where production costs remain at the original costs as construction material prices have not yet increased. Therefore, if the remaining stock of these condominiums built at the original construction costs is absorbed by the market, it may lead to an upward trend in the condominium price index.

            The new condominium price index currently for sale in Q4 2022, when analyzed by area, shows that:

  • Bangkok has an index value of 152.0, a decrease of -0.6% compared to the same period last year (YoY) and a decrease of -1.9% compared to the previous quarter (QoQ).
  • Two surrounding provinces (Samut Prakan and Nonthaburi) have an index value of 142.5, a decrease of -0.4% compared to the same period last year (YoY) and a decrease of -1.4% compared to the previous quarter (QoQ).

 

For the promotional items for new condominiums currently for sale in this quarter, it was found that the majority, 42.7%, are cash discounts, which is a slight decrease from the previous quarter which had a proportion of 45.1%. The next most common promotional item is freebies, accounting for 32.6%, a slight decrease from the previous quarter which had a proportion of 33.0%. However, the offering of free costs at the time of ownership transfer accounted for 24.7%, an increase from the previous quarter which had a proportion of 21.9%.

Chart 3: Comparison of Promotional Items for New Condominiums Currently for Sale in Q3 2022 - Q4 2022