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Townhouses tap tax breaks

Friday, 30 May 2008

source: Bangkok Post May 28 2008 More townhouses were launched in the market last month as developers switched to low-rise developments in order to benefit from tax incentives, according to Sopon Pornchokchai, managing director of the local real estate consulting firm Agency For Real Estate Affairs (AREA). The company reported 24 new projects with 5,528 units worth 13.85 billion baht, down by 42% from 23.75 billion baht in March. There were 3,088 townhouses, accounting for 60% of total units, followed by 1,556 single houses (28.1%), 408 semi-detached houses (7.4%), 243 condominium units (1.4%) and the rest other types of properties. Mr Sopon said significant changes in April were the sharp rise in townhouse developments at price below two million baht a unit and the slowdown in the condominium market. As government tax breaks took effect on March 29, developers turned to offering units that could be completed quickly, in time to qualify for the benefits that will expire next March. In terms of value, single houses had the highest value at 6.91 billion baht or around 50% of total launches last month, followed by townhouses at 3.572 billion baht or 26%. The average price of all units was 2.506 million baht, down from 3.63 million in March. Around 42% of newly offered units were between one and two million baht, and 16% were priced between two and three million baht. Most new projects are located in intermediate areas such as Nakhon-In Road, Ratchapruek Road, Southern Ring Road, Rarm-Intra and Vacharapol, and some projects are located in the outskirts like Temrak-Bang Buathong Road and Lam Luk Ka.

 

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