Several developers commented positively on prices in 2022 due to increased construction costs and market rebalancing.
Due to the reduction of foreign buyers, developers had to turn to the local customer base. Having more modest financial capabilities, it required managerial efforts to keep prices at a certain level.
Companies can no longer continue to do this, and the market demands to let prices rise, even slightly.
One of the reasons was the rise in the cost of production of new real estate, associated with a shortage of labor. COVID and border closures have deprived the local market of many migrant workers. The number of workers decreased, and competition for each increased.
This also resulted in a delay of 10-20% of the terms of various real estate projects.
Other developers argue that the supply-demand balance in the market is becoming more stable so that companies no longer have to wage price wars and dump each other. The focus will be on the qualitative improvement of the new property.
Because of the supply-demand balance, it is impossible to expect shares and discount programs from companies to attract buyers this year. Of the benefits, there will be great interest in deducting fees for the purchase and sale of real estate and mortgages by the end of 2022.
Currently, the percentage of fees is 0.01%. The Minister of Finance of Thailand, Arkhom Termpittayapaisith, noted that this program would not be extended in 2023. Tax deductions for the purchase of land and real estate have been in effect for two years and, according to the Government, have fulfilled their objective.