Nationwide house prices fell by 1.13% in 2022 from a year earlier, in inflation-adjusted terms, following year-on-year increases of 0.23% in 2021, 4.21% in 2020, 1.08% in 2019, 2.4% in 2018 and 4.38% in 2017. On a quarterly basis, house prices were up 2.14% during the latest quarter.
Property transactions are falling sharply. During 2022, the total value of land and building transactions recorded nationwide fell by a huge 28.9% y-o-y to THB790.2 billion (US$), following a 5.7% increase in 2021, based on figures from the Bank of Thailand (BoT).
Nationwide condominium registrations rose by 10.3% to 55,236 units in 2022 from a year earlier, following a 41.8% decline during the full year of 2021, according to the BoT. Despite the increase, it remains the second lowest level recorded since 2011.
Thailand’s economy expanded by 2.6% during 2022, primarily driven by robust private spending, increased fixed investment and recovering tourism, according to the National Economic and Social Development Council. This followed a 1.5% growth in 2021 and a 6.2% contraction in 2020, amidst the Covid-19 pandemic.
Southeast Asia’s second largest economy is projected to expand by between 2.7% and 3.7% this year, based on government estimates. In January 2023, the Bank of Thailand raised its benchmark interest rate by another 25 basis points to 1.5%, marking its fourth-rate hike in nearly four years to rein in inflationary pressures. As a result, nationwide inflation eased to 3.79% in February 2023, down from 5.02% in the previous month and the lowest reading since December 2021, after reaching a 14-year record high of 7.86% in August 2022.
