Market volatility: earthquake impact and price increase coexist

Earthquake impact: After the earthquake on March 28th, many high-rise buildings in Bangkok experienced cracks and damage, seriously undermining the confidence of homebuyers. Real estate consulting firm Gao Li Thailand director Patara Chai predicts that the sales volume of new houses in Bangkok, especially high-rise buildings, will significantly decline in the second quarter, and it will take at least three months to restore confidence. Some homebuyers may postpone or cancel their purchases. However, this earthquake is expected to drive sales of low rise residential properties, similar to the shift in home preferences among homebuyers after the 2011 floods.

Price trend: According to a report by the Thailand Real Estate Information Center on February 8th, housing prices in Thailand have risen for eight consecutive quarters due to factors such as soaring construction costs and land values, with the most significant increase occurring in areas along the Bangkok Metro. By the end of 2024, the prices of new residential properties in the Mangkhinvali, Nuan Chong, and Lakola areas will be among the highest, while the prices of surrounding provinces such as Beilan, Pabaden, and Pashamuqidi are also leading the rise. Despite slowing economic growth and weakened consumer purchasing power, rising construction costs still put upward pressure on new home prices.