Origin points out that real estate prices move, affecting purchasing power in the lower-end market where income cannot keep pace with house prices. Does not shake luxury condos, Siamese Asset believes that Thai people slow down short-term purchases Developers take advantage of foreign demand to compensate. Entrepreneurs solve the game, move locations - Reduce specifications, control costs, maintain the same price.

after the past The real estate sector moves to increase prices. Either a house or a condominium Including home building business due to the consequences of continually increasing costs Both the price of many building materials including transportation costs But from the point of view of entrepreneurs It is still believed to affect only certain markets.

Mr. Peerapong Jaroon-ek, Chief Executive Officer of Origin Property Public Company Limited, said that rising construction costs affected property prices. Whether it's a condominium or a house, it's more expensive. This affects the demand of the low-end market with the selling price not exceeding 3 million baht because the income of most customers in this group cannot keep up with real estate prices. rising In the future, it will be more difficult for people to buy condos in the middle of the city. However, sales of real estate developers In terms of value has not decreased. because the price per unit is more expensive

The price increase does not affect luxury condo sales.

“At present, the price of 3 original condos in Thong Lor, Phrom Phong and Phaya Thai ranges from 7-50 million baht per unit. and even if the price increases But found that customers are still competing to buy Especially in the heart of the city Because it is a location with high potential and its value increases every year. Based on experience, the price of land in the heart of the city has doubled within 10 years. Even though the price is expensive, there are still people who buy it.”

However, to reduce risks and increase business opportunities. The company therefore offers a new way to own a condo in the heart of the city through digital tokens for investment in collaboration with Real Estate Exponential Company Limited and Token X Company Limited. To open the opportunity for people with capital constraints who are unable to buy condos for investment.

by piloting from the Park Origin condominium project in 3 prime locations in the city center, namely Phrom Phong, Phaya Thai and Thong Lor, which have been completed and ready to move in, totaling 361 units, as a reference asset for issuing digital tokens to investment This makes it easier for new generations and the general public to access investments.

At the same time, in the lower market, it may be affected by a decrease in purchasing power. However, it depends on the ability of real estate developers in providing cost management services to be able to develop projects that can support the purchasing power of customers.

attracting foreign demand to compensate

Mr. Kajonsit Singsaensern, Chief Executive Officer of Siamese Asset Public Company Limited, said that the current price of new real estate projects Begin to adjust the price according to the cost of land, materials, construction cost, average 5%, but in the sense that the buyer may know that it is 10-20% more expensive because 2-3 years ago, real estate developers In the market there are offers of high price discounts. to drain existing stock Therefore, when the price is raised and the discount is not given, people feel that it is much more expensive than before, but believes that there will be a short-term psychological effect that will delay the purchase and replace it with renting.

“At this time, foreigners came back to buy real estate. in Thailand increased after opening the country causing this demand to compensate for the demand of Thai people who may delay their purchase decision just right Therefore, it has no effect on sales. I believe that after seeing foreigners come to buy for a while, when Thai people have more purchasing power, they will come back to buy.

Move to a suburban location, reduce specs, pop up low-rise

Mr. Surachet Kongcheep, Managing Director of Property DNA Co., Ltd., said that from the survey in the first quarter of 2023, it was found that the number of new condos launched for sale decreased from the fourth quarter of 2022, about 57%, most of them. It is a project located in a location where the electric train route is already open for service. It reflects that the condo market has not yet recovered from purchasing power and many negative factors that affect the decision to buy housing for Thai people.

“One of the factors is real estate prices that have been adjusted according to rising costs. This caused some entrepreneurs to resort to moving their project locations to the suburbs and adjusting the material specifications in the project. to reduce costs But still maintain the same selling price to customers.

Mr. Surachet further explained that from 2020-2023, most of the new condo projects launched for sale. It is a condo project that has 8 floors or less and has a lower project value than a project that develops into a high-rise building. The entrepreneur chooses the area in the alley. or in areas with not very high potential because they want to develop a condo project with a price that is not very high therefore choosing to buy land in the alley or in locations that have not very high potential to develop projects in line with the purchasing power of customers and economic conditions that have not fully recovered

Source:https://www.bangkokbiznews.com/property/1065382

Date 28/4/2023