People check out deals on condos and houses at a property fair.  Somchai Poomlard

Homebuyers are encouraged to choose completed housing or units under construction in existing projects, as housing prices are expected to rise next year because of increasing costs affecting new projects, according to the Real Estate Information Center (REIC).

REIC reported rising costs in residential development, including land prices, minimum wages and fuel costs, are expected to impact development costs for new projects in 2025.

The prices of new residential units will continue to rise next year based on the home construction price index for the third quarter of 2024, which increased 3.9% year-on-year, reaching 139.4, noted the centre.

The primary factors are the costs of construction materials, which increased 3.9%, and labour wages, which rose 5.1% year-on-year.

In the third quarter of 2024, the price index for low-rise houses available for sale in Bangkok, Nonthaburi, Pathum Thani and Samut Prakan rose, up 0.7% year-on-year, reaching 130.7 on the index.

This marked the eighth consecutive quarter of price increases since the fourth quarter of 2022.

However, in Nonthaburi, Pathum Thani and Samut Prakan, the price index for low-rise houses decreased 0.5% compared with Bangkok, which rose 0.5%.

This decline was attributed to the large stock of unsold completed units, totalling 25,500 units as of the first half of 2024.

The segments with the most unsold units were townhouses priced from 2.01-5 million baht and single-detached houses priced from 5.01-7.5 million baht, prompting discounts to attract buyers.

The price index of condos available for sale in Bangkok, Samut Prakan and Nonthaburi rose 2.7% year-on-year to 159.2, marking the third consecutive quarter of increases.

In Samut Prakan and Nonthaburi, the price index gained 4.6% year-on-year, while Bangkok recorded a 2.2% increase.

This upward trend is attributed to higher project development costs, along with sustained demand for condo units in certain areas, leading to substantial price increases in some locations, according to REIC.

The areas in Bangkok where new condo prices increased the most year-on-year included Huai Khwang, Chatuchak and Din Daeng, where most units are priced 3.01-5 million baht.

In Samut Prakan and Nonthaburi, Muang Samut Prakan, Phra Pradaeng and Phra Samut Chedi posted the greatest increase in new condo prices, with most units costing 2.01-3 million baht.

As of the first half of 2024, there were 22,557 completed unsold condo units, with the highest number priced 2.01-3 million baht, leading to higher market competition.