REIC foresees fewer condo launches in 2014
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Next year should see fewer condominium projects than this year's total of up to 75,000 units because of an oversupply amid higher construction costs, said Samma Kitsin, director-general of the Real Estate Information Centre of Government Housing Bank.
He also noted that a persistent labour shortage meant property developers could not construct and deliver homes to their customers on time, forcing them to limit their 2014 project launches.
Meanwhile, the government’s infrastructure mega-projects worth Bt2 trillion will further squeeze the labour supply for construction sector.
He added that housing prices also looked like increasing by 10-15 per cent next year, driven by rising costs of construction materials, land and labour.
This year, the average price of a detached house is about 25 per cent higher than 2009’s Bt4.72 million, rising to Bt5.91 million. Townhouse prices have also increased from an average of Bt1.66 million in 2009 to Bt2.25 million this year, up 36 per cent.
In the same period, condominium prices have increased from an average of Bt68,000 per square metre to Bt100,000 per square metre, up 48 per cent from 2009 levels.
