The residential market is projected to contract by 5-10% this year, following a slowdown last year, as younger buyers delay home purchases because of reduced confidence in the economy, according to property research firm Terra Media and Consulting.
Sumitra Wongpakdee, the company’s managing director, said a recent survey found the consumer confidence index continued to decline, falling to 72 in 2024 from 76 in 2023 and 79 in 2022, after rebounding from 43 in 2020.
“Although consumers were not entirely lacking confidence, as 50 represents the neutral point, the index still fell from the year before,” she said.
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Despite concerns about the economy, consumers felt their financial situation would improve in 2025.
However, home purchases were being delayed due to a lack of confidence, despite an interest in buying.
“This is contributing to uncertainty in the market,” said Mrs Sumitra.
“The residential market in the first quarter of 2025 is likely to remain sluggish as there are no clear positive economic signals yet.”
According to Terra’s online survey conducted from September to October 2024 among 3,700 potential homebuyers, with 2,500 high-quality responses, the greatest concern was the Thai economy over the next 12 months.
Confidence in this area was 53, the lowest, marking a 20% decline — the largest year-on-year drop.
This was followed by confidence in the Thai economic outlook for the next five years, which dropped 12% to 71.
When asked about purchasing high- value products such as property and cars, respondents gave a confidence score of 64, down by 1%.
In contrast, the remaining two issues concerning their financial status showed the highest confidence.
Confidence in their financial status over the next 12 months was the highest at 95, up by 2%, while confidence in their curxnt financial status compared with 2023 was 80, an increase of 10%.
Source: Bangkok Post
