Residential property prices in Thailand will rise between five and ten per cent this year, according to a survey of leading real estate developers. Most Thai property firms believe that residential prices will rise because most of them faced increases in construction raw material prices of between seven and 15 per cent in 2010.

Sansiri Plc's president Srettha Thavisin said that residential prices will increase between five and ten per cent, but will attempt to limit retail price rises by reduce promotional packages or resizing their residential projects to match rising construction costs. "We believe that most property developers will try to maintain residential prices at their current level. But we may see residential prices rising in the second quarter or the second half of this year," he said.

However, stiff competition in the market may put pressure on most property developers to delay imposing increases for as long as possible. But they will increase prices in the second half of this year, when they can no longer shoulder the increase construction costs. Meanwhile, Asian Property Development Plc's CEO Anuphong Asavabhokhin said that the residential property price rises will cause greater selection amongst develepors of locations that have high demand for new houses but a shortage in supply.
Source: Nation Multimedia