A woman browses housing models offered by the National Housing Authority. The Real Estate Information Center says the prices of BoI-sponsored houses should reflect actual costs. (Photo by Apichit Jinakul)

The new government is being urged to revise Board of Investment (BoI) promotional regimes for developers to help build more affordable residential units for low-income earners as housing prices rise citywide, driven by new mass transit lines.

Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the prices of BoI-sponsored houses should be increased to reflect actual costs.

"The BoI's regulations, which require prices of 1 million baht or less per unit in Bangkok and 700,000 baht a unit in the provinces, are considered unrealistic," he said.

For condos, he proposed unit sizes, which are now required to be a minimum of 28 square metres, be reduced to 22-24 sq m as land costs have risen, particularly in locations suitable to condo development.

If the usable area of the low-rise house (single detached house or townhouse) is reduced to smaller than 70 sq m, which is the minimum size BoI home regulations require, a single-storey townhouse will be more attractive for homebuyers because of a lower price than the two-storey unit, Mr Vichai said.

"The next government should attract more developers to do low-priced housing through tax incentives and allow development of fewer than 50 units in a row, maybe only 20-25 units in a row," he said.

According to the REIC, the price index of new condo supply in Bangkok, Nonthaburi and Samut Prakan in the first quarter was 149.3 points, rising 12.2% and 1.3% from the first and fourth quarters last year.

"The condo price index has soared very quickly with a consecutive increase of more than 10% since the third quarter last year after construction of three new mass transit lines in Greater Bangkok started," Mr Vichai said.

A condominium project in Din Daeng district developed by the National Housing Authority for low-income earners.AMORNTHEP CHATCHALERMPHONG

The routes include the Pink Line from Kae Rai in Nonthaburi to Min Buri, the Orange Line from Thailand Cultural Centre to Min Buri and the Yellow Line from Lat Phrao to Samrong in Samut Prakan.

By location, the condo price index in Bangkok was 150.6, up 12.9% and 1.4% from the first and fourth quarters last year. In Nonthaburi and Samut Prakan it was 142.7, up 9.3% and 0.9%.

The top five locations seeing the highest year-on-year rise in condo price index were Bang Sue-Dusit (38.5%), Huay Kwang-Chatuchak-Din Daeng (30.2%), upper Sukhumvit (24.3%), Nonthaburi-Pak Kret (16.3%) and locations near the Airport Rail Link (12.9%).

The price index of townhouses and single detached houses in Bangkok, Nonthaburi, Pathum Thani and Samut Prakan was 125.2, up 3.4% and 0.8% from the first and fourth quarters last year.

By location, the housing price index in Bangkok was 124.4, up 3.1%, while that in the three neighbouring provinces was 125.7, up 3.7%.

By category, single detached houses in the three neighbouring provinces saw the highest rise with 3.7% to 123.1, followed by townhouses in those locations with 3.6% to 128.9. In Bangkok, they rose 3% to 122.8 and 3.1% to 125.8.

The REIC surveys selling prices of condos, townhouses and single detached houses at new projects with at least six units remaining for sale by quarter, with 2012 as the base year.

The centre found that cash discounts were the most popular campaigns in the first quarter as developers looked to boost sales of condo units that were completed but remained unsold before new lending curbs took effect on April 1.