Thailand’s real estate market is seeing a shift as more people opt for renting due to economic challenges, high household debts and rising interest rates
This year has presented significant challenges to Thailand’s real estate market, marked by slow economic growth, weakened purchasing power and rising
household debt.
Adding to the strain, banks have tightened credit approvals and interest rates remain high.
Phuwanai Phattaraphokin, CEO of LivingInsider Co, a real-estate platform, said at the NEXT 7.0 Conference on Thursday that data shows consumer searches for rental properties surged to 57 million views this year, a 13% increase from 2023. In contrast, searches for properties to buy dropped to 47 million views, down 20% year-on-year.
“Given the current economic climate and consumer mindset, renting is viewed as a more practical option than buying. Despite the downturn, properties in prime locations continue to perform well in the rental market, with some areas experiencing stock shortages. For some, real estate remains a solid investment opportunity,” Phuwanai said.
In 2024, urban property seekers were found to overwhelmingly prefer condominiums (74%) over houses (26%).
Among condominiums, one-bedroom units are the most popular (63%), followed by two-bedroom units (24%) and studio units (10%).
“Consumers prioritize one-bedroom units that offer private living spaces over studio setups. However, budget constraints may lead some to opt for studios,” he added.
For low-rise housing, single-detached homes are the most popular (62%), followed by townhomes (38%), with rental interest at 63% compared to 37% for buying.
Source: The Nation
