The real estate market in Greater Bangkok is witnessing a notable increase in second-hand home transfers, attributed to a decline in purchasing power amid an economic slowdown. This trend reflects a shift in buyer preferences towards more affordable housing options, particularly among lower-end market segments.
Key Takeaways
- Second-hand home transfers in Greater Bangkok have risen for two consecutive quarters.
- Economic factors, including high household debt and interest rates, are driving buyers towards more affordable options.
- The proportion of second-hand low-rise houses transferred increased to 57.8% in Q2 2024.
Economic Factors Influencing Home Transfers
The Real Estate Information Center (REIC) reports that many homebuyers are struggling to secure homes at their desired prices due to economic constraints. Siddhipen Siddharthapong, acting assistant director-general of the REIC, noted that second-hand homes are generally priced lower than new ones of similar size and location.
- High Household Debt: Many buyers are facing challenges due to elevated levels of household debt.
- Interest Rates: Rising interest rates are making new homes less accessible, prompting buyers to consider second-hand options.
Transfer Statistics
In the second quarter of 2024, the number of low-rise houses transferred in Greater Bangkok reached 21,504 units, valued at 93.2 billion baht. This represents a year-on-year decline of 13.5% in units and 5.6% in value. The breakdown of transfers is as follows:
| Type of Transfer | Units Transferred | Value (Billion Baht) | Year-on-Year Change (Units) | Year-on-Year Change (Value) |
|---|---|---|---|---|
| Transferred by Companies | 9,087 | 56.9 | -22.5% | -7.8% |
| Transferred by Individuals | 12,417 | 36.3 | -5.5% | -1.9% |
Shift Towards Second-Hand Homes
The proportion of second-hand low-rise houses transferred has increased significantly, rising to 57.8% in Q2 2024 from 57.3% in Q1 2024 and 53% in Q4 2023. This trend indicates a growing preference for second-hand properties among buyers.
- High-End Market: Interestingly, there was a notable increase in the transfer of new homes priced over 100 million baht, with a 300% rise in units.
- Second-Hand Market: Conversely, second-hand homes priced less than 3 million baht saw a decline, reflecting the challenges faced by lower-income buyers.
Conclusion
The steady rise in second-hand home transfers in Greater Bangkok highlights the ongoing challenges in the real estate market, driven by economic factors that are reshaping buyer behavior. As purchasing power continues to weaken, the trend towards more affordable housing options is likely to persist, influencing the dynamics of the housing market in the region.
Sources
- Bangkok Post – Second-hand home transfers rise steadily, Bangkok Post.
