Housing prices far higher than what most Bangkokians can afford
More than half of Bangkokians find it difficult to purchase a house as their monthly salary is less than 30,000 baht while property prices have continued to rise, according to property developer Sena Development.
The company’s managing director, Kessara Thanyalakpark, said that rising household debt was among factors that hurt Bangkokians’ ability to purchase houses.
“Currently, there is a disconnect between the demand for housing and the high prices set by property developers,” she said.
She explained that more than 50% of Bangkokians were only able to afford houses priced lower than 3 million baht, but most of the housing projects in Bangkok were priced at over 3 million baht.
As a result of the supply situation, most Bangkokians were unable to afford the market price, she said, adding that an increase in land prices and construction costs have triggered an increase in property price.
Kessara said travel expenses have also impacted people’s decision on purchasing a house. Bangkokians earning less than 30,000 baht spent 87% of their salaries, of which 16% – around 5,000 baht – was spent on travel, she explained.
This factor has caused Bangkokians to seek houses in the capital’s surrounding areas, she said.
She added that the rising mortgage loan rejection rate had led to people preferring to rent houses, as purchasing a house would mean paying mortgage instalments for up to 30 years.
“An increase in the expense burden has caused difficulty in purchasing a house for the new generation,” she added.
