The air was thick with anticipation at the beginning of 2025, as property developers eagerly looked towards the horizon, hoping the government would act swiftly to extend stimulus measures from yesteryears to the present day. They believed in the magic these measures held to revive a flagging housing market. Nay, they implored. The urgency was palpable, as echoed by Nuttaphong Kunakornwong, the astute chief executive of SC Asset Corporation, a major player in the property development game. He painted a stark picture of the market, shadowed by economic clouds that have been looming since last year.
“Potential homebuyers, blessed with purchasing power, have donned their ‘cautious consumer’ caps,” Nuttaphong mused, “while financial institutions are holding the purse strings a little too tightly, making mortgages a tough nut to crack.”
Cast your mind back to the good old days of 2024, when transfer and mortgage fee discounts sprinkled some much-needed fairy dust on property demand. Alas, like the season finale of a beloved series, the magic expired abruptly at the year’s end. Nuttaphong, ever the advocate for homeowners, proposed that these charming measures make a grand comeback in 2025, this time spreading their enchantment across all price segments.
Tick-tock, tick-tock. The clock was ticking, and patience was thinning. Chaiyan Charakarul, the bold chairman of Lalin Property Plc, rallied for immediate action, warning that the sands of February were already slipping through the hourglass.
Cast your eyes further afield — Greater Bangkok’s housing scene bears witness to a peculiar tale. A marked 7.5% drop in housing transfers was recorded in 2024, a somber echo of the bygone era of 2019, which seems like a distant mirage, with transfers plunging 34.7% compared to then. Low-rise houses took a more pronounced nosedive, their numbers shrinking from 42,787 to 33,956 units, while condos danced through a minor boom, climbing 4.9% with 47,624 units finding new owners — albeit mainly led by the interests of foreign adventurers, seeking their slice of paradise.
With each year echoing the woes of the market, ventures into mortgages became more akin to Herculean feats, as articulated by Artitaya Kasemlawan from CBRE Thailand. Potential buyers, plagued by fiscal hurdles, saw their dreams delay like a never-ending queue at a theme park ride.
Oh, the unsold inventory, a specter within the industry’s halls, an ever-growing listicle. Since the heady year of 2019, the number of unsold low-rise units has been on a regale rise, crescendoing at the chord of 155,000 units by 2024. With new supply forecasts plummeting to decade-lows — predictions for 2025 cap at a mere 18,000 units — some caution this year’s rise in unsold stock may slow to 159,000 units by year’s end.
A tune of hope rings out in the form of interest rate cuts, like a soft lullaby coaxing the housing market back to sleep. A gentle 1% drop could make mortgage payments just a pinch more palatable for the hopeful homebuyer.
Ah, but there lay another key in the intricate locks holding back the market’s prosperity. The easing of loan-to-value (LTV) limits for those second or third-time dream home hunters, Nuttaphong argued, could fuel demand among the upper echelons. After all, it’s not merely a second home – it’s a marker of proximity to the heartbeats of life — children’s schools, new workplaces.
No need, he suggested, to fear the specter of speculation in today’s market, as the ghosts of speculators past are long gone. Rather, easing caps for all prices could well be the spell needed to turn the tide, enticing budget-conscious buyers and alleviating the excesses of all market segments.
All in all, a fine tapestry it was — of policy changes and market dances — waiting for its fate to be reshaped by the powers that be in this spirited 2025.
I think the government should step in with those stimulus measures again. It’s the only way to keep things afloat!
I agree, Alex. Without those discounts, how can first-time buyers ever hope to secure a home?
Exactly! It’s not just about first-time buyers either; the whole economy benefits from a thriving real estate market.
But if these stimulus measures keep being rolled out, doesn’t that just put a band-aid on a larger economic issue?
That’s a great point, Linda. Long-term solutions should focus on sustainable economic growth rather than temporary fixes.
Exactly! We need to address the root causes of why so many are reluctant to dive into the housing market.
Well, long-term solutions take time. In the meanwhile, keeping the market from collapsing is crucial.
I don’t get why banks are so strict with their lending policies. Loosening those limits could stimulate the market.
True, but isn’t it risky? We don’t want a repeat of the financial crisis where bad loans played a major role.
Valid point, but times have changed. Better checks and balances are in place now than before.
Plus, we’re not talking about reckless lending – just making LTV limits more flexible.
I kinda think it’s good that foreign buyers are showing interest in condos. It’s investing in our economy, right?
Foreign interest is great until it drives local prices up to the point we can’t afford them anymore.
Yeah, that’s true. Balance is tough! But foreign investment does bring in more money and jobs overall.
Honestly, isn’t the housing market just a bubble waiting to burst anyway? Stimuli are just smoke and mirrors.
Is it, though? The demand is real and tangible, not some Wall Street concoction.
Time will tell, but past patterns do raise some alarms, don’t they?
Patterns can be misleading. Regulations and economic dynamics have evolved a lot since past bubbles.
Those unsold houses are just sitting around… feels like such a waste; something must be done.
Why not turn some of them into community spaces or gardens? Might add something positive to neighborhoods.
The government intervening might help temporarily, but we need more than just stimulus packages to build a lasting foundation.
Perhaps investing in green building technologies could attract a new wave of buyers concerned with sustainability.
Totally! Plus, it appeals to younger generations who are more environmentally conscious.
And with the right incentives, it can make eco-friendly options more affordable too.
High interest rates are killers for aspiring homeowners. Bring those rates down and watch the magic happen!
Is anyone else worried about the environment with all this building? What about urban sprawl concerns?
Cutting interest rates will just lead everyone to take on more debt. Too risky!
‘Interest rate drops could make mortgage payments just a pinch more palatable’ – sounds like marketing hype to me.
Easing LTV caps for second homes sounds risky. Do people really need multiple houses in this market?
Easing LTV might drive demand, but I hope it’s paired with stricter vetting for loans to avoid past mistakes.
The charm of interest rate cuts is appealing, but if only it were so simple. There’s more at play here than just numbers.