Thailand real estate prices taking off

The Thai price index for single-detached houses rose by 12.16% in the year to end-Q2 2011, according to the Bank of Thailand (BOT). When adjusted for inflation, the index actually rose by 7.75% over the same period. This was in sharp contrast with the 16% average y-o-y price falls (17% in real terms) seen from Q3 2009 to Q1 2010. During the year to end-Q2 2011:

• the price index for townhouses rose 6.6%
  
• the residential land price index increased 13.4%
• the index for single-detached houses was up by 12.2%, from annual increases of 3.7% in Q1 2011 and 10.6% in Q4 2020

In the second quarter of 2011, there were about 11,000 new launches country-wide; a 9.6% increase from the previous quarter, according to Colliers International Thailand. The launches are mainly in the low to medium end market, with reduced unit sizes, compensating for the increasing land prices throughout the country.

More than 36,000 condominium units are scheduled to be completed by the end of 2011, the highest since the Asian Financial Crisis in 1997. In Bangkok, the total stock of condominium units has already reached nearly 304,000 units.

Source: NUWireInvestor.com