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Houses, townhouses set to shrink

BANGKOK: The trend of smaller unit sizes is expected to seep into single houses and townhouses in Bangkok next year as land prices and construction costs rise, while consumers’ budgets remain unchanged.

Soonthorn Sathaporn, managing director of the small developer Chalerm Nakorn Co, said consumer purchasing power cannot catch up with unit price rises due to the soaring cost of development. Just as condos have shrunk, so will single houses and townhouses.

The usable area for a single house next year could be as small as 110 sq m, down from 180 sq m, while that of a townhouse may be 70 sq m, down from 120 sq m, he said.

Samma Kitsin, director-general of the Real Estate Information Centre (REIC), said next year the market for the low-rise housing segment will return, as people are confident that flooding will not reoccur.

He estimates the total new low-rise houses launched in Greater Bangkok this year at 35,000 units, down from 40,000 last year.

Total condo launches this year will reach 64,000 units, close to the boom year of 2010, and up from 42,000 units in 2011.

An REIC market survey noted for the first 10 months, the number of new low-rise housing projects in Greater Bangkok totalled 171 with 28,519 units.

Condo projects launched over that period numbered 121 with 47,213 units.

Units remaining for sale at low-rise projects at the end of the first six months this year numbered 151,149.

Of those, 79,507 units were priced lower than three million baht (RM298,428). One-third of the total were located in Bangkok, followed by Nonthaburi and Pathum Thani.
Some 71,346 townhouse units remained, followed by single houses at 61,432 and duplexes at 11,968.

In the first half, 89,005 units were sold. Most popular were units priced between three million and five million baht, with 27,520 units sold, followed by one million to two million baht with 25,678 units sold, and two million to three million baht with 18,046 sold.

The most popular townhouses were priced between one million and two million baht, with 23,377 units sold, followed by single houses priced three million to five million baht with 17,452 units sold.

The first half saw 335 condo projects, with 147,743 units remaining for sale. — Bangkok Post

 


This article first appeared in The Edge Financial Daily, on Dec 7, 2012.

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