Thursday, April 1, 2010

Thailand House Prices To Rise Between Five And Ten Per Cent In 2010

Thailand House Prices To Rise Between Five And Ten Per Cent In 2010

Residential property prices in Thailand will rise between five and ten per cent this year, according to a survey of leading Thai real estate developers. Most property firms believe that residential prices will rise because most firms face increases in construction raw material costs of between seven and 15 per cent in 2010.
The president of one of the largest property development companies in Thailand, Sansiri Plc's Srettha Thavisin, has been quoted as saying that residential prices are likely to increase between five and ten per cent, but developers will attempt to limit retail price rises for as long as possible, by reducing promotional packages or resizing their residential projects to match rising construction costs. "We believe that most property developers have tried to maintain their residential prices at or near to current levels. But rising raw materials costs may see residential prices increasing in the second quarter or the second half of this year," he said.
This is good news for existing expatriate home owners in Thailand, according to Andy Evans, editor of Living In Thailand. "After a few years of little or or no growth in their property investment portfolios, expat home owners in Thailand can look forward to sunnier times. However, those wanting to buy a house or condo in Thailand should consider looking to purchase soon, before prices start to increase significantly", he said.
Stiff competition in the market may put pressure on major property developers to delay imposing increases for as long as possible. But price rises in the second half of 2010 are likely, as real estate firms will no longer be able to take on the entire burden of increased construction costs and will have to pass increases on to the market. Also, the CEO of Asian Property Development Plc, Anuphong Asavabhokhin, has said that the residential property price rises will cause property develepors to be more selective in their choice of locations for new projects, adding that they will look for new development sites in areas that are signalling a high demand for new houses, but a shortage in supply.
(ArticlesBase SC #1803473)

Andy Evans - About the Author:
Andy Evans is the editor of the Living In Thailand eBook, an expatriate guide to moving to and living in Thailand.

Source:  http://www.articlesbase.com/exotic-locations-articles/thailand-house-prices-to-rise-between-five-and-ten-per-cent-in-2010-1803473.html