PATTAYA, Thailand – SCB Economic Intelligence Center (EIC) has highlighted a slow recovery in Thailand’s housing market, with economic pressures continuing to influence buyer decisions. According to the SCB EIC Real Estate Survey 2025, factors such as affordability, convenient locations, and price-to-value considerations remain key drivers for prospective buyers. Secondary housing and rental markets are expected to remain popular options.
Key Findings:
- Housing Demand Recovery Remains Slow
Overall housing demand in 2025–2026 is weak and expected to recover gradually over the next five years. Tight credit conditions, rising property prices, and existing homeownership are limiting new purchases, particularly among middle-to-lower income groups. Only 27% of respondents plan to buy within the next 1–2 years, while 47% have no plans to purchase in the next five years. SCB EIC predicts property transfers in 2025 may shrink by 10–15% YoY and 1–5% YoY in 2026, with full pre-COVID recovery unlikely within five years.
- Secondary Housing Remains Attractive
Secondary homes continue to attract interest due to lower prices. About 65% of potential buyers are considering second-hand properties, up from 63% last year. Townhouses and condos are especially popular, with many available for under 3 million baht, making them accessible to middle- and lower-income buyers. Despite overall market contraction, secondary property transfers are expected to decline at a slower rate than primary homes.
- Renting and Rent-to-Own Options Are Key
Many buyers are turning to rentals or rent-to-own schemes due to financial constraints. About 44% of renters cite insufficient funds for purchasing a property outright, while roughly two-thirds of condo renters are considering rent-to-own options to eventually gain ownership without significantly increasing monthly expenses. Full ownership may remain out of reach for most until at least five years from now.
- Affordability and Location Remain Top Purchase Drivers
Price value and strategic location are the most influential factors in buying decisions. Approximately 39% of potential buyers prioritize affordability, while 28% emphasize convenient locations. Proximity to transportation and amenities continues to be a deciding factor, reflecting ongoing demand for accessible, value-for-money housing.
Outlook: Three-Year Window for Purchase Decisions
SCB EIC recommends that buyers with sufficient financial capacity consider purchasing in the next three years while interest rates remain low and competition among developers is high. Those currently unable to buy due to budget constraints are advised to explore rental or rent-to-own options to preserve liquidity while awaiting improved market conditions.
