Wednesday 02 November 2022
“Lumpini Wisdom” identified real estate operators. Accelerate the launch of the final project Boosting sales in the fourth quarter of 2022, enabling new project launches in 2022 to more than double the growth in both number and value. Even in the face of economic volatility from inflation household debt and rising interest rates
Mr. Praphansak Rakchaiwan, Managing Director of Lumpini Wisdom and Solution Company Limited, a real estate research and development company affiliated with L.P.N. Development Public Company Limited, discussed the real estate market trends during the quarter. The last of the year 2022 that real estate operators There are still plans to launch new projects continuously in the last quarter of 2022, despite the economic volatility caused by inflation that has risen more than 5% continuously, resulting in construction material prices. rose Coupled with the Monetary Policy Committee (MPC) tends to continue to raise the policy rate, the interest rate tends to be higher in the last quarter of 2022 compared to the first nine months of the year. while household debt is high, reaching 90% of Gross Domestic Products (GDPs), because real estate operators Project launch plans have been delayed continuously from 2020 to 2021 as a result of the novel coronavirus disease 2019 (COVID-19) epidemic, resulting in a decrease in inventories. Therefore, real estate operators need to go ahead with launching 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 have launched 286 new projects in the Bangkok-perimeter area, representing a total of 76,220 units, with 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, an increase of 235% (YoY), valued at 96,836 million baht, an increase of 58% (YoY), with an average selling rate as of the day. The project was launched 31% and was the launch of 214 residential projects, amounting to 36,789 units, an increase of 65% (YoY), valued at 227,965 million baht, an increase of 103% (YoY). The average sales rate on the project launch date was 14%. The highest figure is a townhouse project with a price of 2-3 million baht. Average sales as of the project launch date are 10% in all locations around Bangkok such as Rangsit, Bang Bua Thong and Bang Na. Next are twin houses. The highest launch in the price range of 3-6 million baht. Average sales as of the project launch date 11%, located in the areas of Bangna, Bang Phli, Samut Prakan, Bang Bua Thong, Nonthaburi and detached houses. The highest launch with a price of 6-10 million baht, average sales as of the project launch date 12% in the areas of Lam Luk Ka, Bang Phli, Samut Prakan, Bang Bua Thong, Nonthaburi.
As for the transfer of ownership of residential rights in the Bangkok Metropolitan Region for the first 6 months of 2022 (January-June 2022), there were a total of 87,316 units of ownership transfer, an increase of 7% compared to the total transfer of ownership in Bangkok. -The perimeter for the first 6 months of 2021 with a total of 81,553 units of transfer, while the value of the transfer of ownership in the first 6 months of 2022 was at 297,159 million baht, an increase of 1.12% compared to the transfer value. Right at 293,845 million baht during the first 6 months of 2021
“From the information of the launch of new projects in the first 9 months of 2022, which is on the supply side and the transfer of ownership in the first half of 2022, which is on the demand side, it can be seen that there are continuous growth rate Although economic growth has negative factors affecting both the impact of the Russo-Ukraine war. rising inflation rate This reflects the purchasing power that is the real demand (Real Demand) that exists in the market, especially the housing market at the price level of 3-5 million baht with high purchasing power. both condominiums and residential houses,” said Mr. Praphansak.
From such trends, “Lumpini Wisdom” believes that real estate operators Continue to launch residential projects continuously during the last curve of the year. To stimulate and stock up on sales To generate revenue continuously in 2023-2024, it is expected that the launch of new projects, both the number of units and the launch value in 2022, will increase more than double compared to 2021 in order to accumulate sales and increase products. to replace the declining number of products resulting from the delay in the launch of the project in 2020-2021
“At the same time, housing prices are likely to increase by 5-8% in 2023 in line with rising costs, both from higher land prices according to the new land appraisal that the Treasury Department announced on January 1, 2023 approximately. 5-8% compared to 2018, combined with a 5-8% increase in the minimum wage rate (depending on the area) effective October 1, including a high rise in construction material prices. increased as production costs increased due to higher energy costs Make buyers who want to buy housing for living (Real Demand) decide to buy a house 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 during the last corner of the year This is considered a golden opportunity for buyers to get the same product at the same price,” said Mr. Praphansak.