Bangkok property market shows signs of recovery as confidence rises
Lower interest rates and availability of loans seen as critical factors
The property market in Bangkok and the surrounding region is seeing a surge in confidence, according to the latest figures from the Government Housing Bank’s Real Estate Information Centre (REIC).
The Residential Purchase Demand Confidence Index for the fourth quarter of 2024 has climbed to 42.9 points, a 2.4-point increase from the previous quarter, indicating a growing willingness among residents to invest in property.
This renewed confidence is reflected in the rising proportion of individuals planning to buy a home within the next six months, now at 28.2%, up from 24.7% in the preceding quarter.
Several factors are driving this positive trend. Reduced interest rates and the availability of low-interest housing loan products from financial institutions are making homeownership more accessible.
The survey reveals that a significant 32.1% of buyers are purchasing homes for their own residence, surpassing those buying for investment (15.8%) or as assets (14.6%). This shift highlights a return to prioritising personal homeownership.
There’s a noticeable increase in demand driven by changing life circumstances. The desire to establish separate households or to purchase property after marriage has risen from 8.9% to 10.3%.
Other factors influencing purchasing decisions include the need for improved travel convenience (up to 9.0%), a better living environment (up to 8.5%), and the appeal of smart home innovations (up to 3.6%).
In terms of pricing, properties in the 2.01-million-baht to 3-million-baht range remain the most popular, accounting for 25.3% of purchases, followed closely by the 3.01 million to 5-million-baht range at 22.8%.
Together, these two price brackets represent a substantial 48.1% of the market. Single-detached houses continue to be the most sought-after property type (40.6%), with the 3.01 million to 5-million-baht range seeing the highest demand.
Condominiums and townhouses are also popular, particularly in the 2.01 million to 3-million-baht range.
Location-wise, Bangkok remains the top choice, accounting for 56.1% of demand, with key economic areas like Bangna, Bang Khae, Lat Phrao, Sukhumvit and Bang Kapi attracting significant interest.
Nonthaburi follows at 8.7%, with Pathum Thani, Samut Prakan, Nakhon Pathom, and Samut Sakhon also seeing notable demand. Collectively, other provinces outside the immediate Bangkok vicinity account for 15.4% of property interest.
The REIC data also reveals that private company employees make up the majority of prospective buyers (55.1%), with a significant portion earning between 15,001 and 30,000 baht per month (34.4%). This demographic represents the core of the current property market.
Looking ahead to 2025, the property market will continue to be influenced by various external factors, including interest rates, government policies, and overall economic conditions.
However, the positive trend in the confidence index suggests a potential market recovery, particularly in the single-detached house and mid-range housing segments, where demand remains robust.
