Property developers hold back new projects amid political uncertainty

According to Prapansak Rakchaiwan, managing director of LWS Wisdom and Solution, a subsidiary of LPN Development Group, property developers could expedite project launches in the fourth quarter if the political situation improves. The real estate market this year has been revised down to 5% from the initial estimate of 10-15%.

In the first half of this year, a total of 179 projects were launched, consisting of 45 condominium projects and 134 residential housing projects, with 24,167 units and a total value of 68.56 billion baht, lower than the same period last year, which saw 48 condominium projects, comprising 30,579 units worth 78.08 billion baht..

The top three locations with the most project launches were Bang Khen, Ratchada-Huai Khwang, and Pattanakarn. These projects mainly featured residential units priced at less than 5 million baht, catering to both homebuyers and investors.

During the first half of this year, 134 residential housing projects priced below 10 million baht were launched in the Bangkok metropolitan area, an increase of 2.22% compared to the same period in 2023. However, the overall number of units introduced decreased by 4.52%, totalling 18,468 units, as compared to the 19,343 units introduced in the first half of 2022. The total value of these projects was 75.20 billion baht in the first half of 2023, a 2.18% increase compared to the same period in 2022, with an average selling price of 4.07 million baht per unit, a 7.1% increase from 3.8 million baht in the first half of 2022.

In the higher-priced category, 42 projects priced at more than 10 million baht were launched in the first half of this year, totaling 2,528 units with a combined value of 59.25 billion baht, marking an increase compared to the same period in 2022. The average sales rate on launch day was 12%, down from an average of 15% in the same period of 2022.

The data shows that in the first half of 2022, real estate developers adjusted their project launches by introducing higher-priced units to cater to the existing market demand. The market for properties priced over 10 million baht experienced a lower housing loan rejection rate compared to properties below 10 million baht.