The real estate sector is poised for an uptrend this year in anticipation that more residential units will be launched with an approximate value between 180 billion and 190 billion baht, according to Dr Sopon Pornchikchai, president of the property consultant Agency for Real Estate Affairs (AREA).
The company's survey showed that a total of 375 real estate projects with 83,828 units worth 208.31 billion baht were launched last year, down slightly from 383 projects with 70,044 units worth 218.86 billion baht in 2006.
The survey showed that the value and number of projects launched last year was not much different from 2006 but the number of units increased significantly by 23% and the average price per unit dropped by 19.03% from 2.827 million baht.
Dr Sopon said the number of newly launched Bangkok units last year exceeded the earlier projection of 75,000 units, and this year would be better if there were no major incidents to diminish confidence.
''If the economic situation improves this year, the property sector will be good as well. There is likely to be more demand for residential units following the improvement in the political and economic circumstances,'' said Dr Sopon.
According to a study by Kasikorn Research Center, launches of new housing projects are likely to be slow in the first half of this year as developers wait to see the economic policies and direction of the new government.
Dr Sopon believes the government should focus on moving forward with transport and infrastructure networks to open new residential locations, which would help support housing prices. The government should also better regulate housing brokerage agents through a licensing system, as a measure to protect consumers, he said.
He also believes it is unnecessary for Thailand to amend the law to extend leasehold periods beyond 30 years as foreigners would continue to buy into Thailand if they saw the potential for gains from the rising property values.
As well, Dr Sopon said he believed the sub-prime problem in the United States would not produce a strong impact directly on the Thai property sector but would affect financial institutions.
Article from Bangkok Post
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