Developers expect residential-property prices to rise in 2nd half

The prediction follows recent increases in land prices and construction costs.

Pruksa Real Estate has increased its residential price by up to 4 per cent in the second half of this year over the first half, attributing the move to rising costs of both land and construction raw materials.

Sansiri Plc has also adjusted its residential prices upwards by 2-3 per cent, citing the same rising costs. 

LPN Development Plc has continued to maintain its condominium prices, but has adapted the designs of its projects to match its rising costs while taking into account customers’ purchasing power.

SC Asset Corporation Plc has also revised upward its residential prices by between 3 and 5 per cent.

Pruksa Real Estate Plc’s president and CEO Thongma Vijitpongpun said the company has been forced to increase its residential prices. This follows land price increases of between 5 and 10 per cent and similar rises in construction raw-materials costs. Residences account for about half the firm’s total construction costs. As a result the company has had to adjust its residential prices upward by an average of 4 per cent in the second half of this year compared with earlier in 2013.

Sansiri Plc chief operating officer Wanchak Buranasiri said the company has boosted its residential prices by between 2 and 3 per cent following the rise in land and construction raw-materials prices.

“We did not adjust the residential prices directly but we have re-sized our residences and maintained prices to match our customers’ purchasing power,” LPN Development Plc managing director Opas Sripayak said.

He added that the company cannot increase prices following increases in construction costs for the overall market because different locations face different demand and different levels of competition. The best way to maintain its sales and net profit is to change its designs and reduce costs while maintaining prices to match demand, Opas said.