REIC: Housing transfers sinking with floods

With about 150,000 houses from more than 1,000 projects in Greater Bangkok and Ayutthaya damaged by flooding, transfers this year will decline by 20%, says the Real Estate Information Center.

Most of the flood-damaged homes are on Phetkasem Road, Bang Kae, Nakhon Pathom and Samut Sakhon. In older projects, the ground level is often lower than road level and they face deeper floodwaters than newer projects, the REIC said.

Even though condominiums look better than low-rise units amid the floods, that segment has also been affected by a sharp decline in purchasing power and site visits.

The number of new and second-hand unit transfers in the third quarter topped second-quarter totals, reaching 43,500 units on a windfall from the first-time homebuyer campaign initiated by the Abhisit Vejjajiva government.

In light of the floods, the REIC says housing transfers in Greater Bangkok would fall 20% to between 135,000 and 140,000 units this year, from 178,000 last year. Low-rise transfers would fall 28% to 76,000 units and condominiums 15% to 62,000 units.

The value of unit transfers is expected to decrease by 26% to 300 billion baht. The market value for low-rise transfers would fall from 228 billion baht to 169 billion, and condominium transfers from 164.5 billion to 122.5 billion.

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