Home sale rise in August but risks haunt property sector
The property business picked up in August but risk factors such as the labour shortage and rising construction costs remain, according to the Bank of Thailand.
Real-estate developers plan to introduce various promotions to boost sales as recovery signs are still hazy to them.
According to the central bank, the housing cost index for August rose over the preceding month for both detached houses and land to 112.0 points, which was also up 4.2 per cent over the same month last year. Townhouses and land were up 6.2 per cent to 122.7 points; condominiums up 2.1 per cent to 119.3 and land up 9.8 per cent to 122.8.
In August, the Bangkok property market improved over the previous month, both in supply and demand.
The seasonally adjusted moving average for the past three months showed a slight increase in commercial-bank extensions of housing loans from last month to 4,344 units from 4,183 units, in line with the rise in condominiums from 1,769 units to 2,121 units. Most of the units were less than Bt3 million.
Overall housing demand is still there despite a slight decline for low-rise residences such as townhouses and detached homes.
However, the shortage of labour, rise in construction and material costs and lower consumer disposable income are still major problems for most developers, many of which have lowered their revenue targets for the year.
