Mr. Praphansak Rakchaiwan, Chief Executive Officer of the Company Lumpini Wisdom and Solutions Ltd., a real estate research and development company affiliated with LPN Development Public Company Limited or LPN said the real estate market trend in the last quarter of 2022 that real estate operators There are still plans to launch new projects continuously. In the last quarter of 2022
Even in the face of economic volatility caused by inflation which has continuously grown by over 5%, driving up the price of building materials. Together with the Monetary Policy Committee or the MPC it tends to continue to raise the reference rate. As a result, interest rates tend to be higher in the last quarter of 2022 than in the first nine months of the year.
while household debt is high, reaching 90% of gross domestic product (GDP), because real estate operators have continuously delayed their project launch plans from 2020 to 2021, due to the COVID epidemic by decreasing the number of stocks Therefore, real estate operators need to move forward with the initiation of projects to increase products and stimulate purchasing power in the market.
While in the first 9 months of 2022 (January-September 65), real estate operators launched new projects in the Bangkok metropolitan region, for a total of 286 projects, for a total of 76,220 units started, representing a total value. baht or growth of 124% and 87% respectively compared to the same period in 2021 were the launch of 72 condominium projects 39,431 units, an increase of 235% (YoY), for a value of 96,836 million baht , an increase of 58% (YoY).
with an average sales rate at project launch date of 31% and the start of 214 residential projects of 36,789 units, an increase of 65% (YoY), valued at 227,965 million baht, an increase of 103% (YoY ) Average sale rate at project launch date 14% of the most launched residential projects are townhouse projects in the price range of 2-3 million baht, with average sales at project launch date of 10% in all locations around Bangkok
like Rangsit, Bang Bua Thong and Bangna, there is a sister house next door. The highest launch in the 3-6 million baht price range Average sales at the launch date of the project 11%, located in the areas of Bangna, Bang Phli, Samut Prakan, Bang Bua Thong, Nonthaburi and single-family homes. The highest launch with a price of 6-10 million baht, average sales at project launch date of 12% in the areas of Lam Luk Ka, Bang Phli, Samut Prakan, Bang Bua Thong, Nonthaburi.
Regarding the change of ownership of residences in the Bangkok metropolitan region for the first 6 months of 2022 (January-65 June), there was a total of 87,316 ownership transfer units, an increase of 7% compared to the changeover. owned in the Bangkok area.-Perimeter for the first 6 months of 2021 with a total of 81,553 transfer units, while the value of the change of ownership in the first 6 months of 2022 was 297,159 million baht, an increase 1.12% compared to the transfer value of 293,845 million baht in the first 6 months of 2021
From the data of the start-up of new projects in the first 9 months of 2022, which is the supply side and the transfer of ownership in the first half of 2022, which is the demand side or the demand side, it can be seen that there is a continuous growth rate, continuous Although economic growth has negative factors that affect is the impact of the Russian-Ukrainian war. rising inflation rate It reflects the purchasing power which is the real demand or the real demand that exists in the market. Especially the real estate market at the price level of 3-5 million baht with high purchasing power. Both condominiums and residences
Mr. Praphansak said that from the above trend, Lumpini Wisdom believes that real estate operators Continue to launch residential projects continuously during the last turn of the year. To stimulate and stock up on sales that will continue to generate revenue in 2023-2024, the number of new projects launched in both unit count and launch value in 2022 is expected to more than double from 2021 to accumulate. Sales and increase of products to replace the reduced number of products. This is the result of the delay in launching the project in 2020-2021.
At the same time, house prices are likely to rise 5-8% in 2023 in line with rising costs, both due to rising land prices, according to the new land valuation that the Treasury Department has announced. on 1 January 66 about 5-8% compared to 2018, combined with a 5-8% increase in the minimum wage (depending on the area), effective from 1 October
Furthermore, the price of building materials has increased in line with the increase in production costs due to higher energy costs. Make buyers wanting to buy a home to live on. I decided to buy a house for the same price around this time. It is an opportunity for real estate entrepreneurs. to launch projects and marketing campaigns to stimulate and stock up on sales in the last curve of the year This is considered a golden opportunity for buyers to get the same product at the same price.
