(Jan 31): New housing project launches in the Thai capital fell 19% last year as prices surged and developers focused more on building expensive properties, according to an industry consultant.

Bangkok, which accounts for about 50% of Thailand’s housing market, saw new launches tumble to 375 projects in 2024 from 462 a year earlier, Agency for Real Estate Affairs Co said in a statement on Friday. The new launches were valued at 413.8 billion baht (US$12.3 billion or RM54.05 billion), it said.

The average price of residential properties has been steadily increasing over the years, with prices jumping to 6.73 million baht per unit last year from 3.94 million baht in 2019, Sopon Pornchokchai, the agency’s president, said in the statement. Still, developers sold nearly 96% of the newly offered units in 2024, he said.

“Cheaper products were harder to sell than more expensive ones,” Sopon said.

Thailand’s property market has been hit hard by the highest household debt level in Southeast Asia and banks becoming more cautious about lending amid an increase in non-performing loans. The government has tried to revive the real estate sector with cuts in property registration and transfer fees.

Large Thai developers have shifted their focus to building ultra-luxury condominiums and villas in Bangkok and the resort island of Phuket to tap demand from rich locals and buyers from Russia and China.

Still, new project launches this year may rise 5% this year as supply in the market continues to decline. “The market glut may not be as much as many parties are worried about,” Sopon said.

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