Homes Under 5 Million Baht Surge 16% While Luxury Market Contracts 35%

Anankorn Amornvalee, President of the Home Builder Association (HBA), revealed that the overall home construction market has declined 11% from the previous year. The market for homes over 5 million baht has contracted sharply, not just due to income issues but also psychological factors and lack of confidence. Wealthy consumers are holding onto cash, waiting to assess the economic situation and stability of the new government before investing in long-term assets. The association notes severe slowdown signals in the high-end housing segment, while entry-level homes continue to grow well. The private sector's primary need is clear and stable government policy to boost consumer confidence. Key recommendations include: stabilizing government management, creating confidence-building policies that reflect economic recovery, and avoiding conflicts that impact investment atmosphere. They are preparing to propose tax policies and stimulus measures to the new cabinet, including tax deductions for home construction and special housing loan interest rates to encourage consumer confidence.