In the first half of 2022 (January through June 2022), Lumpini Wisdom, a Bangkok developer, completed the construction of 163 new real estate projects with a total of 51,946 units and a combined value of 188 billion baht. This is 45% more than in the first half of 2021.
The most sought-after low-rise residential projects were townhouses valued at 2 – 5 million baht. The most popular location was Rangsit – Lam Luk Ka, followed by Phet Kasem – Om Noi and Bang Na – Suvarnabhumi.
Next come duplexes at 3 – 6 million baht and villas at 6 – 10 million baht.
In the second half of 2022, entrepreneurs are planning to continue launching new projects, despite the economic downturn caused by the consequences of the Russian-Ukrainian conflict and the growing inflation.
The inflation in Thailand reached 7.66% this June, which is the highest in 13 years. As a result, the average inflation rate in the first half of 2022 was 5.61%, causing a ripple effect, so prices of construction materials increased by at least 5%.
The index of standard residential property prices was 129.8 in the first quarter of 2022, i.e. 5.3% higher than in the first quarter of 2021 and 3.9% higher than in the fourth quarter of 2021. Prices of construction materials and finishing across 11 categories changed as follows compared to the 1st quarter of 2021:
- Iron and steel items: +35%.
- Construction utilities: +12%.
- Other construction materials: +8%.
- Power supply and communication systems: +5%.
- Concrete items: +6.8%.
- Electrical facilities and sanitary fixtures: +6.6%.
- Timber and timber products: +4.6%.
- Sanitary systems: +2.2%.
- Tiles: -3.2% (the only category where the price dropped).