The share of pre-owned home transfers in Greater Bangkok has increased for two consecutive quarters, driven by weakened purchasing power due to the economic slowdown, according to the Real Estate Information Center (REIC).

 

Siddhipen Siddharthapong, acting assistant director-general of the REIC, noted that many homebuyers, particularly in the lower-end market segment, were unable to find homes at their desired price points, leading them to choose more affordable alternatives.

 

“Pre-owned homes are generally priced lower than new ones of similar size and location,” she stated.

 

“Given the high household debt and interest rates, many homebuyers are opting for more cost-effective second-hand properties.”

 

As per the REIC, 21,504 low-rise houses in Greater Bangkok were transferred in the second quarter of 2024, with a total value of 93.2 billion baht—representing a year-on-year decline of 13.5% in volume and 5.6% in value.

 

The largest decreases were seen in homes transferred by companies, which the REIC considers new homes, with the number of units dropping by 22.5% to 9,087, and value falling by 7.8% to 56.9 billion baht.

 

Meanwhile, transfers of homes by individuals, categorized as pre-owned homes, declined by 5.5% to 12,417 units, with the value falling by 1.9% to 36.3 billion baht.

 

The proportion of transferred pre-owned low-rise houses rose to 57.8% in Q2 2024, up from 57.3% in Q1 and 53% in Q4 2023.

 

For unit sales, the largest increase during the period was seen in units priced over 100 million baht and those between 80-100 million baht, rising by 300% and 150% to four and ten units, respectively. Both categories comprised new homes.

 

For the pre-owned segment, homes priced above 100 million baht saw the highest year-on-year growth, increasing by 125% to nine units.

 

Among new homes priced below 80 million baht, units priced between 20-60 million baht increased, while other price categories declined, with units below 1 million baht experiencing the sharpest decline, down 47.2%.

 

For pre-owned properties, units priced below 3 million baht, between 7.5-10 million baht, and between 20-60 million baht also saw a year-on-year decrease.

 

According to the REIC, transfers of low-rise housing better reflect market trends than condominiums, as these involve shorter-term decisions made by buyers within approximately six months due to the shorter construction timeline.

 

Source: Bangkok Post

 

Yours sincerely,

The editorial team at Invest Bangkok Property