Residential prices in urban areas and along mass transit lines continued to rise in the fourth quarter of 2024, as soaring land and construction costs pushed up prices for new launches, according to the Real Estate Information Center (REIC).
The REIC reported the prices of new low-rise houses and condos available for sale in Greater Bangkok continued to increase in the fourth quarter of 2024 year-on-year.
While the price index for new low-rise houses rose 0.8% to 131.4, marking nine consecutive quarters of growth, the index of new condos increased 3.6% to 159.9, gaining for eight consecutive quarters.
The main drivers were higher costs, including land prices, construction material costs and labour expenses, according to the centre.
The condo price index is significantly higher than that of low-rise houses because land costs for condo developments, which are typically located along mass transit lines or prime locations, are higher.
Condo prices in Bangkok increased 3.4%, lower than the rate in Samut Prakan and Nonthaburi, which gained 4.2% year-on-year.
In Bangkok, the greatest condo price increase was in the Huai Khwang-Chatuchak-Din Daeng area, within the 3.01-5 million baht price range.
In Samut Prakan and Nonthaburi, the highest price gains were in the Mueang Samut Prakan-Phra Pradaeng-Phra Samut Chedi area, within the 2.01-3 million baht price range.
The price index of low-rise houses in Bangkok rose 2.3%, higher than in the three neighbouring provinces of Nonthaburi, Pathum Thani and Samut Prakan, where the index decreased 1% due to a price adjustment for townhouses.
For housing type, the price index of single detached houses increased 2.1% year-on-year and rose 0.3% for townhouses.
The location in Bangkok with the highest price increase for single detached houses was the Min Buri-Nong Chok-Lat Krabang area, within the price range of more than 10 million baht, noted the REIC.
In Nonthaburi, Pathum Thani and Samut Prakan, the highest price increase was in the Lam Luk Ka-Khlong Luang-Thanyaburi area in Pathum Thani, within the 7.51-10 million baht price range.
For townhouses in Bangkok, the highest increase was in the Phra Khanong, Bang Na, Suan Luang and Prawet areas, within the 5.01-7.5 million baht price range.
In the three neighbouring provinces, the largest increase was recorded in the Bang Kruai, Bang Yai, Bang Bua Thong and Sai Noi areas in Nonthaburi, within the 2.01-3 million baht price range.
The centre found in both the condo and low-rise house markets, offering cash discounts was the most effective campaign, with these promotions available for 25.2% of condo and 29.6% of low-rise house purchases.
According to the REIC, the housing construction cost index in the fourth quarter of 2024 rose 4% year-on-year to 139.9, reflecting a continuous increase, while labour costs also rose 4%.
For items, sanitary ware prices surged 12%, while prices of tiles, electrical and plumbing equipment, wood and wood products grew 5.6%, 3.7% and 2.2%, respectively, largely driven by rising oil and energy prices in the global market.
However, the REIC predicts the introduction of low-interest loans by financial institutions should help stimulate the housing market in early 2025.