Thailand’s Housing Market Faces Global and Domestic Challenges
The Thai housing market has faced challenges due to both external and domestic factors, including a downturn in China’s real estate sector, decreased construction demand, high household debt, and an aging population.
Thailand’s residential market has faced challenges due to external and domestic factors, including a downturn in global construction demand and the country’s high household debt.
Key takeaways
- Thailand’s residential market faces pressures from both the slowdown in China’s real estate sector and domestic economic strains, leading to reduced consumer spending and high mortgage rejection rates.
- Nationwide land permits fell 14.7% YoY in H1 2024, with severe drops in construction approvals, especially in Bangkok and the Northeast region, reflecting the broader industry slowdown.
- Developers are focusing on luxury properties as lower-income buyers struggle to qualify for mortgages, signaling a potential K-shaped recovery.
