|Home sales are expected
to drop 22 per cent this year due to consumers'
sluggish purchasing power, said a local
Sopon Pornchokchai, managing
director of Agency for Real Estate Affairs,
said consumers were suffering from the
economic downturn that had come of the
heels of high oil prices.
He said it was expected
that 52,706 homes worth Bt161.2 billion
would be sold this year, compared to 68,052
homes worth Bt254.4 billion last year.
In the first half of this
year, he said, there were 26,353 homes
sold with a total market value of Bt80.6
Sopon said rising oil
prices and interest rates had resulted
in people delaying their decision to buy
a new home.
“Many [potential] homebuyers
are concerned about future earnings, resulting
in a delay in their investment plans, especially
buying a new house,” he said.
Due to the economic slowdown,
he added, many land developers had decided
to put off launching new projects.
A survey found the construction
and marketing campaigns of 90 new housing
projects had been postponed, he said.
“The speed of launching
new projects in the second quarter was
slower than the first quarter because many
developers abandoned plans to launch new
projects,” he said, adding that developers
have found it difficult to sell homes.
Sopon added that demand
for homes priced under Bt5 million continued
to grow slightly in some locations, including
projects on Yannawa-Silom Road, Rangsit
Klong 1-7 and Pathum Wan Road.
He said demand for luxury
homes dropped in the second quarter and
continued to nosedive this month because
real demand dried up last year.
He said Asian Property
Development Plc sold 1,277 homes – the
most in the market – in the first half
of the year, generating Bt6.25 billion
in sales revenue.
Coming in second was LPN
Development Plc, which offloaded 2,390
homes worth Bt4.8 billion, followed by
Quality Houses' 390 homes worth Bt4 billion.