For anyone watching Thai property demand, the latest confidence data carries a clear signal. Consumer sentiment toward buying homes has dropped to levels not seen since the Covid lockdown period, reflecting deeper anxiety about the economy and hesitation around major spending decisions.
According to Terra Media and Consulting, the consumer confidence index for property fell to 56 in the first half of 2025, down from 66 in the second half of 2024. While a reading above 50 technically indicates positive sentiment, the trend is unmistakably downward, and the underlying detail suggests buyers are pulling back.
What the numbers actually show
The index has been declining steadily since peaking at 79 in 2022. It dropped to 75 in 2023, then 72 in 2024, and now 56 in early 2025. The only time sentiment was lower was in 2021, when the index hit 44 during Thailand’s strictest Covid restrictions.
Sumitra Wongpakdee, managing director of Terra, pointed to two specific areas driving the decline. Confidence in purchasing big-ticket items such as homes and cars registered just 42, and respondents’ outlook for Thailand’s economy over the next 12 months came in at 38.
In plain English, people are worried about the economy and are not ready to commit to major purchases. The level of concern, Terra notes, is now comparable to what Thailand experienced during lockdown.
Who is delaying and why it matters
The survey covered 400 respondents, split evenly between Bangkok and other provinces. The largest group, 44%, were middle-income earners with monthly incomes between 15,000 and 50,000 baht. Another 25% earned more than 50,000 baht per month.
Generation Y, aged 31-44, made up the largest share at 44%, followed by Generation X, aged 45-59, at 32%. These are the core buyer demographics for Thai developers, and their hesitation has direct implications for absorption rates, pre-sales and launch timing.
The irony is that respondents remain relatively optimistic about their own finances. The index reading for expected personal financial situation over the next 12 months was 80, and their assessment of current finances compared with a year earlier was 67. But optimism about personal finances has not translated into confidence about the broader economy or willingness to commit to property.
Why this matters for Phuket property
Phuket’s property market is driven by two buyer groups: Thai nationals, particularly from Bangkok, and foreign buyers. When Thai buyer confidence weakens, it directly affects domestic demand for second homes, retirement properties and investment units in resort markets such as Phuket.
Thai buyers have historically been a stabilising force in Phuket during periods when foreign demand fluctuates. If that group is now delaying purchases due to economic concerns, developers may face slower absorption, extended sales cycles and increased pressure to adjust pricing or payment terms.
The data also suggests that buyers who do move forward may prioritise value, location and lifestyle quality over speculative investment or aspirational purchases. That shift has already been visible in Phuket, where demand for well-located, move-in-ready properties has held up better than demand for off-plan launches in secondary areas.
The wellness detail worth watching
Separately, Terra’s survey identified a significant shift in homebuyer priorities toward health and well-being. 93% of respondents considered health a priority, with Baby Boomers placing the greatest emphasis on it.
The strongest increases over the past three years were in prioritising quality sleep and cardiovascular exercise, both at 50%, followed by weight training at 41%. Healthy eating ranked highest among preventive healthcare practices at 64%, followed by supplements and vitamins at 48%.
At the same time, socialising outside the home recorded the largest decline at 49%, followed by spa and recovery treatments at 33% and alcohol consumption at 26%.
Sumitra noted that prospective homebuyers are no longer focused solely on larger living spaces. “People are looking for homes that support better health and long-term quality of life,” she said. “They want access to green spaces, fresh air and environments that contribute to physical and mental well-being.”
For Phuket developers, this is directly relevant. Wellness-oriented design, proximity to nature, walkability, outdoor fitness facilities and air quality are increasingly important to both Thai and foreign buyers. Projects that integrate these features may have a clearer value proposition in a more cautious market.
What remains uncertain
The survey does not explain whether the decline in confidence is driven by specific policy concerns, cost of living pressures, household debt levels, political uncertainty or external economic factors. It only confirms that buyers are hesitant and that the hesitation is broad-based.
It also does not indicate whether sentiment is likely to improve in the second half of 2025 or whether further deterioration should be expected. Terra has moved to semi-annual reporting, so the next reading will provide a clearer sense of direction.
For Phuket property buyers, sellers and developers, the key point is this: Thai buyer confidence is weak, and the weakness is tied to economic concerns rather than product availability or interest rates. That suggests the challenge is not simply a matter of pricing or promotion, but of broader economic sentiment that may take time to recover.
Frequently Asked Questions
What does this mean for Phuket property demand?
Weaker Thai buyer confidence could slow domestic demand for second homes and investment units in Phuket, particularly if economic concerns persist. Thai buyers have been an important stabilising force in the market, so hesitation among that group may affect absorption rates and sales cycles for developers.
Are foreign buyers affected by Thai consumer confidence?
Not directly, but weaker domestic demand can affect overall market momentum, pricing dynamics and developer inventory levels. Foreign buyers often look for signals of local market health when evaluating resort property markets such as Phuket.
Is buyer confidence likely to improve?
The survey does not project future sentiment. The next semi-annual reading will indicate whether confidence stabilises or continues to decline. Recovery will likely depend on broader economic conditions in Thailand.
What should Phuket property buyers watch?
Buyers should monitor whether developers adjust pricing, payment terms or incentives in response to weaker demand. They should also watch for shifts in product focus toward wellness-oriented design and lifestyle features, which the survey identifies as increasingly important to homebuyers.
Does this affect rental demand in Phuket?
The survey focuses on buyer confidence rather than rental demand. However, if economic concerns reduce domestic travel or second-home purchases, rental supply dynamics could shift. The connection is not directly supported by the survey data.
Sources
- Bangkok Post — Consumer property sentiment falls — link
