Thai property market down 13%, with transferred units at lowest level since 2018

In the first quarter of 2024, the transfer of residential properties in Thailand decreased by 13% compared to the same period last year, reaching the lowest level since 2018.

Key Takeaways

• Residential property transfers in Thailand dropped by 13% in the first quarter of 2024, indicating a significant slowdown in demand.
• New housing loans granted in the same period fell by 20.5% year on year, attributed to tighter loan conditions imposed by financial institutes.
• The transfer of horizontal residences saw a larger decline compared to condominium transfers, with the total value of transferred units reaching its lowest point in 19 quarters.

In the first quarter of 2024, residential property transfers to buyers decreased by 13% compared to the same period in the previous year, as reported by the Real Estate Information Centre (REIC) of the Government Housing Bank. From January to March, a total of 72,954 units were transferred, which is the smallest number recorded since 2018.

This decline is attributed to a significant slowdown in demand in the residential property market, with new housing loans also falling by 20.5% year on year. The drop in transfers was particularly pronounced for lower-priced residences, with units priced between 5-7.5 million baht experiencing the biggest decrease at 20%.

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Newly released home loans across the country mirrored the trend of housing transfers, dropping to a 25-quarter low of 122 billion baht. This represented a 20.5% year-on-year decrease, the biggest decline in over six years.

Sales among domestic buyers are slowing down, prompting the need for collaboration between the government and private sector to attract foreign buyers. Despite this, REIC remains hopeful that overall residential property sales in 2024 will expand by 5-10% year on year.