The BOT reported a decade-high Residential Property Price Index (RPPI) for 2Q22, reflecting higher construction material costs in 1Q22. The increase was broad-based, led by prices for the SDH category, followed by TH and condo. As the RPPI in 2Q22 didn’t fully factor in higher costs, we expect it to rise further in 3Q22 (even if costs flatten out). However, demand in the high-end price segment remains strong. LH and AP remain our top picks.
2Q22 Residential Property Price Index rose
The Bank of Thailand’s Residential Property Price Index for 2Q22 was 171.9, up by 4.3% YoY and 1.4% QoQ (the 1Q22 RPPI rose 3.7% YoY), reflecting higher construction material costs in 1Q22. The increase was broad-based, but led by higher prices in the SDH category. The SDH price sub-index marked a decade-high of 152.6 for 2Q22, up by 5.2% YoY and 1.8% QoQ. The TH price sub-index was 169.9 (also a decade-high), up by 4.3% YoY and 1.5% QoQ. The condo price sub-index was 185.3 in 2Q22, up by 3.6% YoY and 1.8% QoQ (but below its decade-high of 185.4 for 3Q21). Lastly, the land price sub-index was 179.6, up by 4.3% YoY and 0.4% QoQ.