Developers require rejig to flatten prices.

 Residential developers should revise down unit sizes and adjust some features to keep housing prices flat, to accommodate sluggish purchasing power after prices were pushed up by higher costs caused by the impact of the Russia-Ukraine war.

 Developers will also be more cautious about land purchases to avoid incurring higher costs from a new tax.

 Issara Boonyoung, honorary president of the Housing Business Association, said home construction costs would rise by 5-10%, particularly for residential units for which the portion of construction cost was higher than land.

 "Inflation and the sluggish economy will cause a decrease in home purchasing power," he said. "While costs increase, developers may be unable to raise housing prices as homebuyers may not be able to afford a unit as their purchasing power has stayed the same or decreased."

 To keep housing prices flat, developers should downsize units from 18 square wah to 16 sq w for a townhouse or shift to duplex houses instead of single detached houses, Mr Issara said.

 Atip Bijanonda, vice-chairman of the Board of Trade of Thailand, said low-rise housing developers should adjust products to reduce costs, for example, cutting unnecessary features or using design solutions.

 "Some functions or features that incur too high costs should be replaced with choices which will not affect homebuyers' usage," he said.

 He said completed, ready-to-transfer condo units would face no impact from the rising costs as their costs were from the period before higher inflation kicked in.

 But for condo projects under construction, developers may reduce their profit margin to keep sales prices flat to drain their stocks.

 Tritecha Tangmatitham, managing director of SET-listed developer Supalai Plc, said revising down unit size slightly could help developers offer units at old prices.

 "Higher costs are mainly derived from global inflation," he said. "If the war is prolonged, housing prices cannot avoid an increase."

 Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said prices of vacant land had been rising more slowly for a period of over two years due to the economic slowdown caused by the pandemic.

 "The situation got worse with the Russia-Ukraine war. The Thai economy will likely have a lower growth than expected which will have an impact on home purchasing power," he said.

 
IMPACT ON LAND PURCHASES

 Over the past two years, many developers froze new project launches and slowed down land purchases.

 A discount in the land and building tax in 2020-21 has not been extended this year, as a result, developers will be more cautious about purchasing land to control costs incurred from the tax.

 According to the REIC, the price index of vacant land in Greater Bangkok from the second quarter of 2020 to the first quarter this year had a quarterly rise of only 1.93% on average, compared with 4.1% during 2015-19.

 The index experienced the highest increase in 2018 when the government invested in many new mass transit lines in Greater Bangkok such as the Yellow, Pink and Orange lines, said Mr Vichai.

 The increase eased in the second quarter of 2019 after lending curbs were announced during that period.

 The land price index soared again during the third quarter of 2019 until the first quarter of 2020 before slowing down due to the pandemic.

 The top five locations where the land price index rose were in areas where new mass transit lines are slated to be built. (Bangkok Post).

Khlong Toei

The location of Khlong Toei in the present is the ancient city of Pak Nam Phra Pradaeng on theeast side of the Chao Phraya River, between Khlong Phra Khanong and Khlong Chong Nonsi.(Currently the office of the Port Authority of Thailand) in the geographical areaThis is the area where the Chao Phraya River flows north. forcing the ship to sail slowlybecause it must go up against the wind, suitable for setting up a checkpoint for entering and exiting the cityMarine outposts or southern checkpoints since the past, both in the Lavo Era, around1400 B.E., where the Khmers extended all the power to rule the Chao Phraya River Basin.Ayutthaya when King Ramathibodi I (King U Thong) left Suphanburi to build"Krungthep Dvaravati Sri Ayutthaya" (or Krung Sri Ayutthaya) in the year 1893extended its dominance over Sukhothai over Cambodia and south down to Cape Malay.)

Area 12.316 square kilometersTerritory- North, adjacent to Watthana District from the railway boundaryChong Nonsi Line on the east side, next to Sukhumvit Road, north tothe east along the northern edge of Sukhumvit Road.Through Soi Sukhumvit 2 (Soi Nana Tai) until the entrance of Soi Sukhumvit 52(Soi Siriphon) on the north-east side, connecting to Phra Khanong District . Starting from the entrance of Soi Sukhumvit 52(Soi Siriphon) in the north to the north West along the edge of the road until the end ofSoi Sawasdee cuts the Chalerm Mahanakorn Expressway through the old railway line, Pak Nam.Through the sugar cane plantation community, the Chao Phraya River- South, connects to Phra Pradaeng District . Samut Prakan Province since the communitySugar cane plantation borders the Chao Phraya River to the west to the boundary of the railway line.Chong Nonsi on the east- west, connects with Sathorn and Pathumwan districts . from the boundary line of the Chong Nonsi RailwayOn the east side, next to the Chao Phraya River, to the north along the Chong Nonsi Railway Line on the east side.It joins Sukhumvit Road in the north.

At the present stage, the port has lost its important position. Due to constant traffic jams, the port was moved to Laem Chabang in Chonburi province.

The poorest residents have established the largest slum in the city in the Khlog Toei area. According to official figures, about 100k inhabitants live in the slums.Perhaps these are the descendants of those residents who worked in the old port.

 Khlong Toei also boasts one of the largest markets in the city.The face of the area is rapidly changing. Now the activity of investors is aimed at developing the territory along Rama IV str. We will get acquainted with some new real estate objects in another topic.

New Bangkok river bridge on course to open next year
Construction of the country’s widest bridge, spanning the Chao Phraya River in Bangkok, is more than 72 per cent complete, the Expressway Authority of Thailand (EXAT) said on Sunday.The eight-lane route runs parallel to Rama IX Bridge and is scheduled to open next year.

Costing 6.63 billion baht, the new bridge comes under the fourth contract for the expressway project covering Rama III, Dao Khanong and Western Outer Ring Road.

The project will facilitate travel between Bangkok and the west, EXAT said.

Construction of the two-kilometre-long cable-stayed bridge is being undertaken by Ch Karnchang Plc.

The construction period is 39 months and scheduled to be completed next year, EXAT said.

The slope of the bridge will be less steep than Rama IX Bridge to facilitate traffic flow. It is also designed to withstand winds of up to 270 kilometres per hour, equivalent to a tornado, it added.

The bridge will connect the six-lane elevated road, Bang Khlo intersection and two expressways – Chalerm Mahanakorn and Si Rat.

EXAT said it was cooperating with related agencies to have the bridge named in honour of His Majesty King Maha Vajiralongkorn.

"Once the bridge is completed, it will become a new landmark in Bangkok and facilitate traffic flow across the Chao Phraya," it added. ( The Nation)

Reopening of Thailand’s borders to international tourists might help developers dispose of unsold Bangkok flats, analysts say

Foreigners typically account for about 10 per cent of all home transactions in Thailand and Chinese buyers make up more than half of this foreign demand
Chinese buyers were ‘the main driver for Bangkok flats before Covid-19’: Knight Frank executive

The full reopening of Thailand’s borders to foreigners is likely to help the struggling Bangkok flats market, analysts said.

Thailand began allowing in fully and partially vaccinated foreigners from February 1 and has proposed a travel bubble with China, which analysts said would help developers sell their inventory. China, along with Malaysia, was among the two largest sources of foreign tourists in Thailand before the coronavirus pandemic and jointly accounting for a third of the 40 million international visitors coming to Thailand in 2019. (South China Morning Post)

Siri Sala this Private Riverside Villa in Bangkok Comes With Thai Cooking Classes and a 65-foot Saltwater Pool.

The villa is located in front of the temple Wat Suwannaram.

 A luxury villa in Bangkok Noi has recently opened for guests in Bangkok. Such luxurious private villas can be easily found on some islands in the south of Thailand and in the north of the country.

 There are almost no such projects in Bangkok. Combination of traditional architecture with modern building materials, traditional villa layout and innovative technologies. Everything is set up for relaxation and privacy, comfort and safety.

Services available to guests of the villa: large salt water pool, transfers and excursions, Thai cuisine school, SPA, etc.

Price per night in low season is $3500 just over 120k THB. During the high season, the price can rise to $6,000 (206k THB).

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