Wednesday 02 November 2022
“Lumpini Wisdom” identified the real estate operators. Accelerate Final Project Launch Increase sales in the fourth quarter of 2022, enabling new project launches in 2022 for more than double the growth in both number and value. Even in the face of economic volatility due to household debt inflation and rising interest rates
Praphansak Rakchaiwan, chief executive of Lumpini Wisdom and Solution Company Limited, a real estate research and development company affiliated with LPN Development Public Company Limited, discussed the real estate market trends during the last quarter of the year 2022 that real estate operators There are still plans to launch new projects on an ongoing basis in the last quarter of 2022, despite the economic volatility caused by inflation which has continuously increased by more than 5%, resulting in higher building materials prices. Coupled with the tendency of the Monetary Policy Committee (MPC) to continue to raise the reference rate, the interest rate tends 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 The project launch plans have been continuously delayed from 2020 to 2021 due to the new coronavirus epidemic 2019 (COVID-19) , resulting in a decrease in inventories. 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 nine months of 2022 (January-September 2022), real estate operators started 286 new projects in the Bangkok perimeter area, for a total of 76,220 units, for a total value of 324,801 million baht or growth of 124% and 87%, respectively, compared to the same period of 2021, with the launch of 72 condominium projects, 39,431 units, up 235% (YoY), valued at 96,836 million baht, up 58% (YoY) , with an average sales rate per day. The project was launched at 31% and was the launch of 214 residential projects, equal to 36,789 units, with an increase of 65% (YoY), worth 227,965 million baht , with an increase of 103% (YoY). The average sales rate at the launch date of the project was 14%. The highest figure is a terraced house project with a price of 2-3 million baht. Average sales at project launch date are 10% in all locations around Bangkok such as Rangsit, Bang Bua Thong and Bang Na. Then there are twin houses. 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 transfer of ownership of residential rights in the Bangkok metropolitan region for the first 6 months of 2022 (January-June 2022), there was a total of 87,316 ownership transfer units, an increase of 7% compared to the previous year. total transfer of ownership in Bangkok – The perimeter for the first 6 months of 2021 with a total of 81,553 transfer units, while the value of the transfer of ownership in the first 6 months of 2022 was 297,159 million baht, an increase of 1.12% compared to the transfer value of 293,845 million baht in the first 6 months of 2021
“From the information on the launch of new projects in the first 9 months of 2022, which is on the supply side and from the change of ownership in the first half of 2022, which is on the demand side, it is clear that there is a continuous growth rate Although economic growth has negative factors that affect it is the impact of the Russian-Ukrainian war. rising inflation rate This reflects the purchasing power which is 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 residential houses, ”said Praphansak.
From such trends, “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 To generate continued revenue in 2023-2024, the launch of new projects, both the number of units and the launch value in 2022, will more than double than in 2021 to accumulate sales and increase products. the decrease in the number of products due to the delay in starting the project in 2020-2021
“At the same time, house prices are likely to increase 5-8% in 2023 in line with rising costs, both due to the increase in land prices according to the new land valuation that the Treasury Department has announced. about January 1, 2023. 5- 8% compared to 2018, combined with a 5-8% increase in the minimum wage (depending on the area) in effect from 1 October, including a sharp increase in the prices of building materials increased as the cost of production due to higher energy costs Make buyers wishing to buy housing for a living (Real Demand) decide to buy a home at the same price during this period. 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 seen as a golden opportunity for buyers to get the same product at the same price, ”said Praphansak.
