Prices of houses and condominiums are likely to increase

BANGKOK, Sept 9 (TNA) – Prices of houses and condominiums are likely to increase by 6-7 per cent next year since cement and steel sheet, which are key raw materials for house construction, are set to cost more on the back of the oil price hike, according to an industry executive.

Issara Boonyoung, president of the Project House Business Association, said the government-supported measures to reduce the house ownership transfer and mortgage fees are due to end on March 8, 2010, a move which will fuel the fee burdens of home buyers.

So, it is a good opportunity for potential homebuyers to decide on their home purchase within this year because prices remain relatively unchanged.

He predicted that the condominium market this year would enjoy a growth level close to that of last year.

Newly-registered condominiums now total 80,000 units, a number which is close to that of last year. Condominiums priced at around one million baht will remain popular.

Mr Issara said he did not believe the condominium market would experience an oversupply, despite expressions of concern by many.

Late this year, he said, the real estate market is expected to grow actively because more people might decide to buy houses before the government’s measures to reduce the ownership transfer fees end. (TNA)