Market Stimulated by Recent Housing Incentives
PUBLISHED: 2 Apr 2025 at 06:08
The expiration of reduced transfer and mortgage fees for homes priced at 7 million baht or less, which ended last year, significantly boosted housing demand in Bangkok within this price segment, according to a new survey.
The acting assistant director-general of the Real Estate Information Center (REIC) stated that the incentive was highly effective in stimulating the housing market.
“In the fourth quarter of last year, homebuyer sentiment was weak, with new condominium sales in Bangkok falling by 25%, and new low-rise sales decreasing by 31%, leading to an overall decline of 27%,” she noted.
“As the incentive was set to expire, many buyers of residential units in the 7 million baht range rushed to complete their transactions before the deadline.”
REIC conducts quarterly surveys on residential transactions in Greater Bangkok, examining various price brackets, specifically focusing on properties priced between 5.01 and 7.5 million baht.
The most benefited price segment consisted of properties valued at 7 million baht or less, according to the center.
The year-on-year rise in residential transactions in Greater Bangkok for properties priced at 7.5 million baht or less differed by location during the fourth quarter of 2024.
Nakhon Pathom experienced the most significant growth, attributed to low transfer volumes in the prior year.
Bangkok followed closely, with a larger proportion of transactions and value shifting towards second-hand properties, demonstrating a shift in buyer preference towards pre-owned units that align better with their budgets.
Despite a drop in new unit transfers in Bangkok, the total value of transfers increased, reflecting a shift in demand towards higher-priced segments amidst weaker purchasing power in the lower range.
Nonthaburi was the only area in Greater Bangkok to experience a decline in both the total number and value of transfers, primarily in new units, as buyers opted for second-hand properties.
While the number and value of second-hand home transfers increased in Nonthaburi, it wasn’t enough to counterbalance the overall decrease, which primarily stemmed from a significant drop in new unit transactions.
In Samut Prakan, the housing measure effectively boosted demand. The area experienced a minimal decline in the value of new unit transfers, decreasing by only 0.3%, while the number of transfers increased by 6.3%, largely due to lower-priced units.
“The Bang Phli-Bang Bo and Phra Samut Chedi areas demonstrated strong sales and high absorption rates,” the official added.
