Thai Real Estate Groups Urge Loan Easing, Single Annual Expo
Three Thai real estate associations say the 2026 property market has passed its low point and is entering a rebalancing phase, buoyed by government measures that raised Q2 transfers by 22.9%, but warn that purchasing power remains fragile due to high household debt and tight lending, with loan‑rejection rates climbing to 44.9%. They project a ‘Recovery with Quality’ in 2027 and urge the government to adopt five supportive policies, including reducing home and condo expos to once a year, while noting that condo sales are recovering faster than detached‑house sales.
The Thai Housing Business Association, the Thai Real Estate Association, and the Thai Condominium Association assessed that Thailand’s property market in 2026 has moved past its trough and entered a rebalancing phase, helped by government stimulus that lifted Q2 ownership transfers by 22.9% to 95,082 units worth 242.7 billion baht. However, purchasing power remains fragile amid high household debt—about 16.4 trillion baht, or 85.9 % of GDP—and tight lending, which pushed the home‑loan rejection rate to 44.9 % in the first half of 2026, up from roughly 40 % a year earlier. Small developers are disappearing because they struggle to obtain project financing, cutting new supply by more than half.
The groups forecast a ‘Recovery with Quality’ in 2027 and urged the government to adopt five measures, including cutting the number of annual home and condo expos from multiple events to just one per year. They noted that condo sales are rebounding faster than detached‑house sales, particularly in Bangkok and its periphery, while the resale‑home market is growing as buyers seek more affordable options. Developers remain cautious about launching new projects early in the year but expect a pick‑up in the third quarter, indicating that demand exists if projects match location and price expectations.
Sunthon Sathaporn, president of the Thai Housing Business Association, said consumer behavior improved in the first half of 2026 compared with the same period in 2025, but the recovery is still fragile because some of the gain comes from rushed purchases before stimulus measures expire. He added that the real obstacle is not a lack of desire to buy but the inability to turn that desire into sales due to credit constraints. Pitipat Preeyanond, president of the Thai Condominium Association, stressed that successful condo projects must satisfy both location and price, noting that high‑rise units in flood‑protected areas with appropriate building levels could attract buyers concerned about natural disasters.
