The Real Estate Information Center of the Government Housing Bank (REIC) reported that the index for new condominiums for sale in Bangkok and its vicinity for Q4 2023 stands at 154.3 points, reflecting a 2.7% increase compared to the same period last year (YoY). This rise is attributed to a 3.5% increase in the condominium price index in Bangkok compared to the same period in 2022 (YoY). However, when compared to the previous quarter (QoQ), there is a decrease of 0.5%, marking a continuous decline from the last quarter to stimulate sales and transfer volumes at the end of the year. In Q4 2023, promotional offers for new condominiums primarily consisted of freebies, accounting for 36.3%, down from 38.4% in the previous quarter.

Dr. Vichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center stated that the price index for new condominiums in Bangkok has been on a continuous upward trend compared to the same period last year (YoY), having increased for four consecutive quarters from Q1 2023 to Q4 2023. In contrast, the price index for condominiums in the surrounding provinces has decreased compared to the same period last year (YoY), continuing a decline for five quarters from Q4 2022 to Q4 2023.

“It is noteworthy that the decline in the condominium price index in the surrounding provinces is largely due to older projects that were launched before 2021 and remain unsold. These projects were completed with construction costs that have not yet risen significantly, allowing developers to lower prices. Thus, they are employing promotional strategies in Q4 2023, offering cash discounts and freebies to stimulate sales, with a combined proportion reaching 71.5%,” he added.

In Q4 2023, when analyzing the price index by area, Bangkok has an index value of 157.3 points, reflecting a 3.5% increase compared to the same period last year (YoY), but a decrease of 0.5% compared to the previous quarter (QoQ). The price index for Bangkok shows a stable upward trend (Sideway-up) due to price increases compared to the same period last year (YoY) for four consecutive quarters from Q1 2023 to Q4 2023. The areas with price increases include early Sukhumvit at a price level of 7.51 – 10.00 million baht, followed by Thonburi at 3.01 – 5.00 million baht, and Ladprao-Wangthonglang-Bang Kapi at 3.01 – 5.00 million baht.

For the two surrounding provinces (Samut Prakan and Nonthaburi), the index stands at 141.2 points, reflecting a 0.9% decrease compared to the same period last year (YoY) and a 0.2% decrease compared to the previous quarter (QoQ). The price index for the surrounding provinces continues to show a slowdown due to price declines compared to the same period last year (YoY) for five consecutive quarters from Q4 2022 to Q4 2023, with price reductions observed in urban areas.

In Samut Prakan-Phra Pradaeng-Phra Samut Chedi, the price level is between 1.01 – 1.50 million baht, followed by Nonthaburi urban areas at 2.01 – 3.00 million baht, and Bang Phli-Bang Bo-Bang Sao Thong at 2.01 – 3.00 million baht, which are competitive zones with a reasonable number of units available for sale.

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

Source: Real Estate Information Center, Government Housing Bank

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

Source: Real Estate Information Center, Government Housing Bank

Chart 2: Growth Rate of New Condominium Price Index for Sale in Bangkok - Surrounding Areas Compared to the Same Period Last Year (YoY)

Source: Real Estate Information Center, Government Housing Bank

For promotional offers for new condominiums for sale in this quarter, it was found that 36.3% were freebies, down from 38.4% in the previous quarter. The cash discount promotion accounted for 35.2%, a decrease from 35.3% in the previous quarter, while the offer of free transfer fees increased to 28.5%, up from 26.4% in the previous quarter.

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

In Q3 2023 - Q4 2023

Source: Real Estate Information Center, Government Housing Bank

Data Compilation Method

The new condominium price index for sale refers to the prices of condominiums in projects with at least 6 units available for sale. This index does not include second-hand condominiums.

The data collection area includes Bangkok and surrounding provinces, comprising only three provinces: Bangkok, Nonthaburi, and Samut Prakan.

The sampling method for compiling this price index uses simple random sampling with 150 samples. The selling prices used to compile the index are actual selling prices, which have been adjusted to exclude the value of promotional offers from the listed prices, using the year 2555 as the base year.