A new survey has found that consumers want the Thai government to intervene in the real estate market and control property prices.
DDproperty.com, Thailand’s number one property portal, has revealed the findings of its Consumer Sentiment Survey covering the first half of 2018.
The survey of more than 1,000 people found that 70 percent of respondents through current property prices are too expensive.
Some 61 percent also thought that the economy is not performing well.
Real estate consumer satisfaction during the first half of 2018 dropped to 57 percent, down from 61 percent during the second half of 2017.
With less purchasing power, 61 percent of those surveyed agreed that the government has not been doing enough to make housing affordable.
They suggested the government should provide more support for home buyers by, first, regulating property prices of newly launched projects by developers (69 percent), providing more subsidies to first-time home buyers (62 percent), and third, regulating supply of all property types (45 percent).
That said, 83 percent expect property prices to increase within 1 to 5 years.
For buying intentions, 41 percent said they are planning to buy a home within six months, up from 36 percet in the H2 2017 survey.
Kamolpat Swaengkit, Country Manager for DDproperty, said: “DDproperty’s Consumer Sentiment Survey has focused on consumer’s demand for housing, and it’s clear that it still exists.”
“However, pricing appears to be the main barrier to buying, especially for first-time buyers who are often new jobbers wanting to create a family but have low purchasing power.”
“These first-time buyers, however, will need to make purchase decisions soon as property prices continue to trend upwards which will make entry into the market even more difficult.”
Interestingly, 36 percent of respondents indicated that Outer Bangkok is their preferred location to purchase, an area which has been identified by several research reports as being subject to oversupply.
A total of 95 percent said they are looking to buy properties priced no more than THB 5 million, whereas 48 percent said they prefer a price of less than THB 1 million.
Key factors that influence buyers’ decisions, aside from price, were reported as being location (95 percent), infrastructure and available amenities (69 percent), and the safety and security of the local area (64 percent).