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Market Trend Summary
By admin | July 3, 2009
According to the new promotion plan from the Board of Investment (BoI) in which the developers will be qualified for a tax reduction by building at least 50 housing units (townhouses or detached houses) with a minimum size of 70 square metres (up from 31 sq m) and a maximum price of 1.2 million baht (up from 600,000 baht). And apartments must be at least 28 sq m and priced no more than 1 million baht. This promotion has an obviously impact on the real estate projects that located around Bangkok’s suburbs as the land prices are quite low. In terms of developers, the 30% of tax deduction will definitely help marking down the selling price for the consumers. Or meanwhile, empower them to buy the new lands in the city in order to develop the further good projects.
It depends on each developer to choose whether tactic is the right one for their consumers. But it is quite possible that the middle to low market will be more expanded. Logically, the 1 million baht condominium can be sold at the cost around 920,000 – 950,000 baht while the 1.2 million baht townhouse can be sold at the cost around 1.1 million baht.
At present, BoI housing market is the biggest market in the real estate industry which belongs to 60-70% of the country population. It has been forecasted that in the near future there are going to be a lot more market penetration from the small and medium real estate developer firms as well as some of the market leaders.
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