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REIC: สำรวจตลาดอสังหาริมทรัพย์ในกรุงเทพฯและปริมณฑล ไตรมาส 2/2567

Exploring the Real Estate Market in Bangkok and its Surrounding Areas: What Generation is Most Interested in Buying Homes and What Type of Living Space Do People Desire?

According to a report from the Real Estate Information Center (REIC), the confidence index in purchasing residential properties in Bangkok and its surrounding areas for the second quarter of 2017 revealed some interesting insights. It showed that single houses are in high demand, with individuals aged 25-34 being the most interested in residential properties.

When it comes to the reasons for buying a new residential property, the majority (32.1%) aim to own a home for themselves, while 17.8% see it as an investment opportunity or for rental purposes. Additionally, 15.0% view it as an asset, 9.5% want to separate from their families or get married, 8.6% seek convenience in commuting, 7.8% desire a better environment, 5.2% look for co-working spaces, 3.2% seek smart home innovations, and 0.8% have other reasons.

The report also highlighted that the proportion of individuals looking to buy properties for investment and as assets decreased slightly to 32.8% from the first quarter of 2017, where it was 33.3%. Despite this, there is still a significant emphasis on investment and wealth accumulation among property buyers.

The confidence level in purchasing residential properties in Bangkok and its surrounding areas for the second quarter of 2017 was relatively low. This was partly due to concerns from individuals looking to invest, as factors such as Loan-to-Value (LTV) measures and the strictness of financial institutions in providing credit did not favor investment purchases. These factors have contributed to the overall low confidence in buying residential properties.

The report also revealed that there is an increasing interest in properties that offer convenience in commuting and a better living environment, with the proportions rising from 7.8% to 8.6% and 7.6% to 7.8%, respectively.

In terms of age groups interested in purchasing residential properties:
– 49.4% are aged 25-34
– 26.9% are aged 35-44
– 10.0% are aged 45-54
– 7.8% are aged 18-24
– 5.9% are aged 55 and above

When it comes to the average monthly income of individuals looking to buy residential properties:
– 34.8% earn between 15,001-30,000 baht
– 27.1% earn between 30,001-50,000 baht
– 16.2% earn between 50,001-80,000 baht
– 3.8% earn between 80,001-100,000 baht
– 9.3% earn more than 100,000 baht

The most desired types of residential properties and their price ranges are as follows:
– Single houses: 39.3% prefer properties priced between 3.01-5.00 million baht
– Condominiums: 36.0% prefer properties priced between 2.01-3.00 million baht
– Townhouses: 19.4% prefer properties priced between 2.01-3.00 million baht
– Twin houses: 5.0% prefer properties priced between 3.01-5.00 million baht
– Commercial buildings: 0.3% prefer properties priced between 2.01-3.00 million baht

The provinces that people are most interested in buying residential properties are:
– Bangkok: 48.7%
– Nonthaburi: 10.5%
– Pathum Thani: 8.0%
– Samut Prakan: 7.0%
– Nakhon Pathom: 5.0%
– Samut Sakhon: 3.9%
– Others: 16.9%

Dr. Wichai Wiratkapan, the Inspector General of the Government Housing Bank and Director of the Real Estate Information Center, stated that the confidence index in purchasing residential properties in Bangkok and its surrounding areas for the second quarter of 2017 was at a level of 39.6%, slightly higher than the first quarter of 2017 (39.2%). However, this level of confidence is still below the average level of 50.0.

This indicates that individuals looking to buy residential properties still have low confidence levels, despite the government’s efforts to stimulate the economy through the real estate sector. Measures such as reducing transfer and mortgage fees to 0.01% for buyers of properties priced below 7.00 million baht aim to alleviate the financial burden on property buyers during the transfer of ownership.

Furthermore, there are low-interest credit schemes offered through the Government Housing Bank, such as the Happy Home housing loan project with a budget of 20,000 million baht for homes priced below 3.00 million baht, and the Happy Life housing loan project with a budget of 20,000 million baht for homes priced from 2.50 million baht and above. These initiatives aim to provide easier access to credit for individuals looking to buy homes and stimulate the residential property market.

Despite these efforts, the residential property market still faces challenges from various negative factors, including:
1. The cancellation of Loan-to-Value (LTV) relaxation measures by the Bank of Thailand
2. High household debt levels exceeding 90% of GDP, which poses a risk that financial institutions need to consider when granting credit, leading to a higher rejection rate for credit applications, especially among low to middle-income groups
3. The high-interest rate policy that remains at 2.50%, directly affecting the affordability of residential property purchases
4. The slow economic recovery in Thailand, which has resulted in lower income growth rates, reducing the purchasing power and ability to repay loans, ultimately impacting direct residential property sales.

In conclusion, the real estate market in Bangkok and its surrounding areas continues to face challenges despite government initiatives to stimulate the sector. The low confidence levels among property buyers, coupled with negative economic factors, pose obstacles to the growth of the residential property market. However, with strategic interventions and supportive measures, there is potential for the market to expand and thrive in the future.

Source: Real Estate Information Center (REIC), Government Housing Bank

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