[Special Scoop] DDproperty’s Consumer Sentiment Survey reveals that Single-Detached Homes were the most demanded product among home seekers in the 2nd half of 2017. Meanwhile, low interest rates were a key factor for consumers considering buying real estate. The locations for property seekers were Bangkok’s suburban and peripheral areas, as property prices in the heart of the city skyrocketed.
Factors which Affected Buyers’ Decision
Looking at the beginning of 2017, Thai consumers’ efforts to buy property stalled due to the country’s economic slowdown. Decreasing exports, falling currency value and accumulated household debts caused this downturn. However, by the 2nd half, the economic situation improved and the property market started to recover. In an online survey conducted during December of last year, we found 5 major factors that affected consumers seeking property in The Greater Bangkok area.
Factors of Buying
1. Low-interest rate mortgage
2. Expected increase of property value in the future
Factors of Not Buying
1. Overpriced property
2. Unfavourable economy
3. Surging property price
Property price seems to be a vital factor and it delayed many consumers’ decision to buy property. On the other hand, the anticipation of increased property values in the future encouraged them to buy property.
“Single-Detached Home” Remained Most Wanted Among Home Buyers
According to the graph, the highest percentage of “definitely would buy” property buyers are for Single-Detached Homes, followed by Land at 18% and Condominium at 16%. Meanwhile, Semi-Detached Houses the most probably were the type buyers were least likely to purchase at 13%, followed by Mixed-use at 12%. Condominium, which recorded 19% of “definitely would buy” property in the 1st half of this year, decreased by 3% in the 2nd half.
1. Outer Bangkok
2. Ratchada / Ladprao / Rama 9
3. Phrakanon / Onnut / Udomsuk
5. Bangna / Bearing
Consumer Sentiment Survey is conducted every six months (last edition: December 2017) and enrolled with over 600 participants to reflect consumers perspectives on Thailand’s property market.
Consumers Believed in Healthier Property Market in 2018
Numerous factors are expected to boost consumers and developers’ confidence in 2018. These include lower household debts, 2-year fixed interest rate at 1.5%, the Eastern Economic Corridor (EEC) development plans, and various expansions of Bangkok’s mass transit system. These factors helped trigger a greater volume of property purchases in the 2nd half of 2017. Yet, despite the current positive momentum, we still need to watch the situation closely. What measures or schemes is the government planning to launch and will developers set the price with justice are a few of the questions that must be answered moving forward.
This article is written by Araya Siripyak, Content Writer at DDproperty.com. For more information, please contact firstname.lastname@example.org