The Agency for Real Estate Affairs (AREA) estimates that new residential project launches in Bangkok and suburban areas this year will increase by more than 50 per cent in terms of units from 2009.
AREA president Sopon Pornchokchai said the company's estimate is based on new residential projects comprising 45,649 units worth Bt109.58 billion in the first half of this year. The company estimates new residential projects for the full year will be 87,574 units, worth Bt216.75 billion, up 52 per cent in terms of units and 18 per cent in terms of value over last year.
According to AREA, 63 per cent of total new projects launched in the first half were developed by the industry's top 10 listed property firms. Up to 34 per cent of total new projects launched by listed property firms were from Pruksa Real Estate.
The increase in project launches follows a Board of Investment (BOI) policy revision early this year that broadened tax privileges for home-buyers. Sales of residential projects in the first half of this year were 42,448 units, accounting for 90 per cent of new projects in the period, which totalled 45,649 units.
Meanwhile, inventory in Bangkok and its suburbs was 110,666 units, which is expected to take about two years to sell. Currently, the residential projects number 1,266. Some 64 projects are suspended due to loan, environmental or sales problems.