A significant portion of Thais are putting their homeownership dreams on hold, citing widespread economic concerns as the primary driver, according to recent research. The proportion of consumers with no immediate plans to purchase a home within the next five years has climbed to 56%, an increase from 50% observed in the previous year.
Economic Worries Drive Homeownership Pause
Economic uncertainty has emerged as the most prevalent reason for delaying home purchases, impacting 15% of respondents. This marks a substantial rise from just 7% who cited similar concerns a year prior. While affordability remains a factor, with 15% pointing to income levels and household expenses making homeownership less attainable, this figure has seen a slight decrease from 19% last year. Simultaneously, perceptions of housing prices being excessively high have more than doubled, affecting 9% of respondents compared to 4% a year ago.
Concerns regarding household debt and difficulties in accessing mortgage financing have remained relatively consistent, with 7% and 1% of respondents, respectively, highlighting these issues. Analysis indicates that some prospective buyers are hesitant to proceed with mortgage applications, or opt not to apply at all, due to a belief that their applications would be unsuccessful. Others preemptively assess their financial standing as insufficient to qualify for a housing loan, choosing not to pursue applications from the outset.
Key Concerns and Government Appeal
Among the pressing issues respondents wish the government to address to improve access to homeownership, the rising cost of living outpacing income growth is paramount. This trend has diminished affordability and borrowers’ capacity to service housing loans, a point raised by 32% of respondents. Household debt burdens follow closely, impacting both the ability to secure new mortgage financing and manage existing housing loan obligations, cited by 29% of respondents.
Further concerns include the high prices of newly constructed homes, noted by 16% of respondents, and more stringent mortgage lending criteria implemented by financial institutions, a factor for 15%. Economic volatility, which has prompted many to postpone or cancel home purchase plans, was highlighted by 8% of respondents.
Proposed Solutions for Housing Affordability
Respondents have also put forth specific calls for short-term government interventions to bolster housing affordability. A significant 44% are seeking support mechanisms for aspiring homeowners, such as soft loan schemes and affordable housing programs tailored for low-income individuals. Approximately one-fifth of respondents are advocating for assistance for existing borrowers facing mortgage repayment difficulties. This includes proposals for more flexible repayment terms for individuals with good credit histories, debt restructuring programs, debt moratoriums, and credit record rehabilitation initiatives.
An additional 18% of respondents are urging for measures to reduce homebuying expenses and introduce tax incentives for homeowners. Suggestions include extending the current reduction in transfer and mortgage registration fees to 0.01%, a policy currently set to expire soon, and prolonging the temporary easing of loan-to-value rules, which is scheduled to end in June 2027. Tax deductions for homebuyers and reduced land and building taxes for homeowners are also among the proposed tax incentives.
Residential Market Outlook
The nation’s residential property market is projected to experience a contraction this year, with a gradual recovery anticipated over the medium term. This outlook is shaped by persistent economic challenges, including the slow pace of economic recovery, elevated levels of household debt, and stricter mortgage lending standards enforced by financial institutions. Consumer demand remains subdued as individuals postpone property purchases and investments due to prevailing economic uncertainties. These economic headwinds are further compounded by global events, which continue to influence both domestic and international purchasing power.
