Thai housing market slumps as transferred units, loans hit 6-year low
Foreign buyers seen as key to revival in demand
Transfer of residential property to buyers in the first quarter of 2024 fell 13% from the same period last year, the Government Housing Bank’s Real Estate Information Centre (REIC) reported on Thursday. A total 72,954 units were transferred from January to March, the lowest since 2018.
The figures represent a significant slowdown in demand in Thailand's residential property market, said REIC director Wichai Wiratkapan.
Also hitting a six-year low were new housing loans granted in the first quarter this year, which fell 20.5% year on year (YOY), said Wichai. He blamed the drop on tighter loan conditions imposed by financial institutes.
REIC reported that transfers of horizontal (low-rise) residences dropped 18.9% YOY, while condominium transfers only fell 0.6%.
The total value of transferred units in Q1 was 208.73 billion baht, a contraction of 13.4% YOY and the lowest in 19 quarters.
Residences priced 5-7.5 million baht saw the biggest drop in transfers with 20% contraction, followed by units priced 1.5-2 million baht (down 19.8%), 3-5 million baht (down 18.2%), and 2-3 million baht (down 18%).
Supply of residential property also fell.
New residential units launched in metropolitan Bangkok in Q1 dropped 38.5% YOY to 13,312 units, comprising of 7,214 horizontal residences and 6,098 condos/apartments.
REIC predicts transfers in the second quarter will expand by around 5.5% YOY thanks to government stimulus packages and demand from foreign buyers.
“With sales among domestic buyers now slowing down, the government and private sector must work together to attract foreign buyers to stimulate the property market in the short term,” said Wichai.
The REIC remains hopeful that overall residential property sales in 2024 will expand by 5-10% year on year, he said.
