Thai Homebuyers Put Off Purchases as Economic Worries Rise

The Siam Commercial Bank Economic Intelligence Center's 2025 real estate survey shows Thailand's housing market remains under pressure from slow economic recovery, economic uncertainty, strict lending policies, and high property prices, keeping consumer purchasing power weak. Senior analyst Chetsathawat Songprasert of the bank's research center reported that demand for housing in 2025 has hit its lowest level in four years of surveys, with 56 percent of respondents saying they have no plans to buy a home within five years—the highest proportion recorded. This reflects consumer reluctance to commit, as buyers wait to gauge economic direction and build financial reserves. Even high-income earners above 100,000 baht monthly are increasingly delaying purchases, signaling that economic strain is now reaching upper-income groups. Among those still planning to buy, most expect to purchase within three to five years rather than immediately, wanting first to evaluate economic conditions and financial readiness.

The center expects the 2025 housing market to stabilize or grow modestly from a weak base, buoyed by accelerated transfers ahead of a reduced transfer and mortgage fee of 0.01 percent for properties under 7 million baht. Recovery is projected to be led mainly by the secondhand home market, while the mid-term outlook remains limited by slow economic growth. Tight lending conditions also weigh on the market, with consumers worried about loan rejection—particularly those earning 50,000 baht or less monthly who typically seek homes under 5 million baht. Although most borrowers still service loans normally, concern about sustaining payments is rising.

The survey also found consumers are cutting home budgets, with strong demand emerging for properties under 3 million baht, mainly from earners under 30,000 baht monthly—a group facing higher rejection risk. Most buyers are purchasing their first home for actual occupancy rather than investment, as second and subsequent home purchases and buy-to-rent activity are declining, reflecting consumer focus on housing necessity over investment during economic uncertainty. With new homes becoming pricier and harder to access, secondhand homes are gaining traction across types and price ranges. Used townhouses in suburban areas offering convenient city access appeal especially to middle and lower-income groups. Secondhand inventory is rising steadily, particularly homes under 3 million baht including condominiums and townhouses in Bangkok and suburbs, plus single houses in provinces. About one in three current homeowners plan to sell within five years, mainly to reduce maintenance costs and shift to cash or alternative investments.

The rental market, a refuge for those unable to buy, is also feeling pressure from economic headwinds.