Realtors warn of hike in costs
Three real estate associations are urging homebuyers to make a decision this year as new residential development costs will affect housing prices in the second quarter of 2023.
Wasan Kiangsiri, president of the Housing Business Association, said housing prices were estimated to rise by at least 10% due to new development costs which were impacted by several factors.
"Soaring oil prices, inflation and an uptrend in interest rates are negative factors affecting construction costs," he said.
"An increase in construction costs will affect new lots of residential units which will likely begin from the second quarter next year."
He said other factors which would have an impact on housing prices were land prices which have never dropped and minimum labour wage which already rose by 10%.
"Those who are ready to buy a house should make a decision now to get a unit price based on former costs," he said.
The Housing Business Association, the Thai Condominium Association and the Thai Real Estate Association are hosting the House and Condo Fair at Queen Sirikit National Convention Center until Oct 30.
There are more than 1,000 property projects from over 200 developers introduced at the fair.
The majority of them or about one-third are condos, followed by single detached houses at 20% and townhouses at 16%.
The associations expect to record 3 billion baht in sales throughout the four-day event.
This fair is being held for the first time since the outbreak of Covid-19 in early 2020.
About 40% of units expected to be sold will be condos, with low-rise houses accounting for the rest.
Campaigns include discounts, home decoration packages, free iPhone 14, free home appliances and a waiver of transfer and mortgage fees and common area expenses.