SCB EIC, the research centre of Siam Commercial Bank, predicts that the transfer of new residential units in Greater Bangkok will decline by 10% this year, with a further contraction of 1-3% projected for 2025, mainly due to the country’s sluggish economy.
In terms of value, the decrease is estimated at 9% for 2024, but it may stabilise to between 0-2% next year, according to the research house.
The downturn in the residential market is attributed to economic challenges, including rising living costs, weakened purchasing power, a high level of household debt, increasing interest rates, and stricter mortgage approval criteria.
These factors are causing prospective homebuyers, particularly in the lower- to middle-income segments, to postpone purchasing decisions.
Additionally, SCB EIC forecasts that the number of newly launched residential units in 2024 will decrease by 28% year-on-year, with the figure expected to cover in 2025 with a projected contraction of 2-4%.
Source: Bangkok Post
