Thailand Housing Demand Stalls with 56% Buying Delay
Thailand's property market faces a slow recovery as 56% of potential buyers delay purchases until 2027 or later, driven by weak purchasing power and strict lending standards.
56% of Thai consumers report no plans to purchase a home within the next five years. This figure marks the highest recorded level since the survey began four years ago. The share of buyers postponing decisions has increased from the previous year. The delay extends beyond lower-income households. Even those earning over 100,000 baht monthly are deferring purchases. Buyers are waiting to assess economic stability and personal financial positions.
The SCB EIC Real Estate Survey 2026 projects the market will remain flat or show only modest growth in 2026. Short-term support comes from a low comparison base. Buyers are accelerating transfers before reduced fees expire. Current transfer and mortgage-registration fees are set at 0.01%. This rate applies to homes priced at no more than 7 million baht. Developers are also running promotional campaigns to stimulate demand.
Mortgage Constraints Limit Purchasing Power
Securing financing has become the primary barrier for buyers. Concerns over mortgage rejection have risen slightly year-over-year. The risk is highest among those earning 50,000 baht or less monthly. These consumers typically target homes priced under 5 million baht. Banks maintain tight lending standards due to elevated non-performing loans. Most current borrowers still meet repayments, but future ability to pay is a growing worry.
The core market issue has shifted from desire to buy to ability to finance. Purchasing power remains fragile amid high living costs. Strict credit criteria limit access to capital for many prospective buyers. The market is stabilizing rather than growing strongly. This reflects a broader adjustment in household financial planning.
Budgets Shift Toward Lower Price Tiers
Consumer budgets are moving downward as expectations adjust to economic realities. Interest in homes priced at no more than 3 million baht has increased markedly. This trend is prominent among earners under 30,000 baht monthly. This group faces the highest risk of loan rejection. Demand is no longer driven by investment or second-home purchases.
Buyers are prioritizing genuine residential needs over rental income opportunities. The share of investors seeking units for lease has declined. Households are focusing on necessity. This shift indicates a more cautious approach to real estate acquisition. The market is reflecting a structural change in buyer motivation.
Second-Hand Market Gains Market Share
Interest in second-hand housing has risen across all property types. Used homes offer lower prices than newly built units. This affordability makes them attractive in a tight credit environment. Second-hand townhouses are seeing particular interest. Suburban locations with convenient access are leading this trend. The shift indicates a preference for value over new construction.
