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Through 2022 to 2024, the housing markets in the BMR should gradually strengthen on an economic rebound and rising consumer spending power

In 2026, Phuket's housing market is expected to moderate from the strong momentum seen in 2025, reflecting continued uncertainty surrounding the global and Thai economies

Through 2025, the market for residential property in the Bangkok Metropolitan Region (BMR) has been under great pressure due to softening domestic and international consumer purchasing power arising from the uncertainty generated by the global trade war. Through 2026-2027, the frail domestic economy and ongoing weakness in consumer spending will remain the major challenges to the housing market.

In 2021, the housing market in the Bangkok Metropolitan Region (BMR) will remain flat or see only mild growth, premised on: (i) the ongoing spread of COVID-19 and the effects of this on economic recovery, and (ii) steadily rising household debt that is undercutting consumer purchasing power and encouraging lenders to be more careful about the release of new credit.

In 2026, the housing market in the six major provinces1/ is expected to slow in line with Thailand’s economy

Updated the key Industry Indicator: Housing in BMR in each industry.By Patchara Klinchuanchun

Through 2019, the housing market in the Bangkok Metropolitan Region (BMR) is expected to keep growth flat or slow down due to a high base effect in 2018. The market will also encounter headwinds in the form of: (i) the new, stricter regulations governing housing debt that determine loan limits on a loan-to-value ratio; (ii) the introduction of the Land and Building Tax Act, which will come into effect in 2020; and (iii) a weakening of the spending power of overseas (and especially Chinese) buyers caused by a softening of the world economy. These factors may then feed into higher operating costs, and a decline in both investor confidence and the willingness of buyers to purchase new properties. However, in 2020 and 2021, the market is expected to rebound on the effects of government spending on major infrastructure projects and on greater demand for accommodation from non-Thai buyers investing or working in Thailand.

In 2021, housing sales in the 6 major provinces will likely remain flat or drop slightly from 2020 levels as COVID-19 continues to hurt the economy. In response to the prevailing weak business conditions, developers have been trying to run down existing stocks of unsold properties. Looking at 2022 and 2023, conditions should improve along with stronger economic growth, while government stimulus measures will help to lift consumer purchasing power. But there are still several headwinds weighing on the property market. Household debt would continue to trend up, which would reduce affordability and simultaneously lead to tighter credit conditions. In addition, demand for housing has been mostly absorbed in 2020, when developers had cut prices to run down inventories, reflected in the mild drop in house ownership transfers. Also, demand from foreigners will continue to be capped by restrictions on international travel.

The housing markets in the 6 major provinces will continue to strengthen over 2023-2025, helped by: (i) the gradual recovery of the Thai economy; (ii) progress on the public infrastructure investment, which will then encourage an uptick in economic activity; (iii) recovery in the tourism sector, with foreign arrivals now expected to return to their pre-Covid-19 level by 2025; and (iv) government efforts to stimulate property sales by cutting fees for registering mortgages and transferring ownership

Updated the key Industry Indicator: Low Rise Housing in BMR in each industry.By Patchara Klinchuanchun