Most of property developer firms believed that residential price will rising because of most of them faced construction raw material price rising between seven and 15 per cent in this year. They are including steel price, cement price, and etc.
However, most of them cannot rise price higher than 10 per cent because of they still faced high competition.
Sansiri Plc's president Srettha Thavisin said that residential price will increase between five and ten per cent following construction raw material rising. But property developers will not rising residential price directly. They will reduce promotion package or resize their residential projects to match with they construction cost rising.
"We believed that most of property developer firms have tried to maintain their residential price till they cannot shoulder high cost rising. This may be see residential price rising in the second quarter or the second half of this year," he said.
SC Asset Corporation Plc's chief operating officer Kree Dejchai added that homebuyers have to pay money to buy residential in this year higher than last year from two reasons. The first is construction raw material price rising, as the next is property tax incentive expires.
Although the government may be renew tax incentive for property sector, homebuyers have continued to pay more money to buy residential in this year because of construction cost rising, he said.
However, the high competition in the market that may be pressure most of property developer firms will delay to rising their residential price in the first half of this year. But they will increase residential price in the second half of this year, when they cannot shoulder construction cost rising, he said.
Meanwhile, Asian Property Development Plc's CEO Anuphong Asavabhokhin said that the residential price rising will select some location that has high demand but supply shortage. In some location, residential price will be stable because of low demand in that location.
"We cannot say in nationwide that residential price will rising because of although construction raw material price rising but some location has over supply in the market that may be force to maintain or cut price through the marketing event," he said.
Supalai Plc's director and deputy managing director Atip Bichanond said that residential in the central business district (CBD) such as head of Sukhumvit road till soi Thong Lor, Sathorn, and new location such as Ratchada, and Lad Phord have significant to rising between five and ten per cent. As some location that far from the central business district (CBD) that may be stable or dropped, which will cut price to their promotion campaign.
Preuksa Real Estate Plc's director and chief operating officer Prasert Taedullayasatit said that although property developers have continued to maintain their residential for sale in this year following high competition in the market, but homebuyers have continued to pay high cost to buy residential in this year. Because of mortgage loan interest rate has significant to rising between 0.5 per cent and 1 per cent in the second half of this year.
Meanwhile, Agency for Real Estate Affairs (AREA) believed that residential price in Bangkok and suburban will rising only between three per cent and four per cent in this year compare with last year. That is estimate from the company data-based, which monitor the market since the year 1985.
The research said that since the year 1985 till now land price in Bangkok and suburban increases average three pre cent a year. Residential price in Bangkok and suburban has rising every year average three or four per cent a year. Although the government's tax incentive expires on March 28, 2010, that will not have significant to increase residential price in this year over than three or four per cent, the research said.
Meanwhile, Kasikorn Research Centre (KResearch) has forecasted the number of housing completions in the Bangkok Metropolitan Region (BMR) (excluding those part of the Ua Arthon low-cost housing project) in 2010 may grow in a range of 4.5-6.2 percent to total some 73,700-74,850 units over the year, compared to 70,500 units in 2009. Increases would be seen in all types of residential units.
Most notably, low-rise housing projects are expected to achieve higher growth after experiencing slowdowns over the past few years amid intense competition in the sale of well-located condos. That supply is expected to subside somewhat, however, and the number of units available may only reach levels close to last year. However, condos are still expected to be more numerous than low-rise units and custom-built home.
Source :http://www.nationmultimedia.com/
Courtesey : www.allphuketrealestate.com
