Latest news with #REIC
Bangkok Post
14-07-2025
- Business
- Bangkok Post
Residential index hits record low in Q1
The Thailand Overall Residential Market Index (TORMI) fell to its lowest level since the index was introduced in 2021 in the first quarter of 2025, even dropping below the levels recorded during the Covid-19 pandemic, according to the Real Estate Information Center (REIC). The TORMI stood at 71.1 points in the first quarter of 2025, a 10.7% decrease year-on-year. The previous record low was in the third quarter of 2021 at 71.3 points, followed by 72.2 points in the fourth quarter of 2020. According to REIC, the drop stemmed from a slowdown in both housing demand and supply. On the demand side, the number of housing ownership transfers in Greater Bangkok fell by 13.6% year-on-year in the first quarter of 2025. The decline in buyer activity was partly due to some prospective buyers postponing their decisions in anticipation of an extension to the reduced transfer and mortgage fees for 2025. On the supply side, the number of newly completed and registered condo units in Greater Bangkok dropped by 33.9% year-on-year. Additionally, the developer confidence index fell by 6.3 points from the corresponding period last year. The TORMI in the first quarter of 2025 also marked a sharp decline from the previous quarter, which stood at 85.5 points, up from 76.8 in the third quarter of 2024. This was largely due to the expiration of transfer and mortgage fee reductions for residential units priced at 7 million baht or less at the end of 2024. However, REIC expects the housing market to improve in the coming periods, supported by government stimulus measures. These include the reinstatement of transfer and mortgage fee reductions, which were extended on April 22, 2025, and remain active until June 30, 2026. In addition, the Bank of Thailand has temporarily eased the loan-to-value (LTV) ratio from May 1, 2025, to June 30, 2026. These two measures are expected to gradually help revive the real estate sector starting from the second quarter of 2025. With these positive developments, REIC forecasts that, under its base-case scenario, the TORMI for 2025 will decline by just 1% from the previous year, reaching 80.9 points. However, in the worst-case scenario, the TORMI could plunge by as much as 10.8% to 72.9 points, as the housing market continues to face multiple risk factors. These include a persistently high level of household debt, tighter credit approval standards from financial institutions, uncertainty surrounding the US's economic policy and ongoing geopolitical tension, all of which contribute to a slowing economic outlook both domestically and globally. REIC developed the TORMI as a quarterly index starting from the fourth quarter of 2021, using housing market data from both the demand and supply sides. The index was constructed based on data from 2009 to 2017, with 2012 set as the base year. The index is a quantitative measure, incorporating various indicators from Greater Bangkok. On the demand side, it includes data on housing ownership transfers, absorption rates of single-detached houses and condos.
Bangkok Post
03-07-2025
- Business
- Bangkok Post
Greater Bangkok property demand surges in Q1
Confidence among prospective homebuyers in Greater Bangkok surged in the first quarter of this year, reaching its highest level since tracking began in the fourth quarter of 2023, driven by interest rate cuts and the temporary easing of loan-to-value (LTV) rules. The Real Estate Information Center (REIC) reported that the housing purchase confidence index (HPCI) in Greater Bangkok rose to 51.7 in the first quarter of 2025, surpassing the neutral benchmark of 50 for the first time. This marks a 12.5-point year-on-year increase, from 39.2, and an 8.8-point rise from 42.9 in the fourth quarter of 2024. The rebound in sentiment was supported by a cut in the Bank of Thailand's policy rate from 2.25% to 2.00% on Feb 26, which lowered monthly mortgage payments and improved affordability for buyers. Banks also rolled out low-interest housing loans early in the year, while the central bank announced on March 20 a temporary relaxation of LTV rules, effective from May 1, 2025 to June 30, 2026, further boosting purchasing sentiment. REIC found that the share of respondents planning to buy a home within one year jumped to 61.1%, up from 50.8% a year earlier. The data was collected through online and offline surveys of over-18s at housing expos and on the REIC website. Most survey respondents were women (62.1%), aged 25–34 (47.4%), holding a bachelor's degree (66.4%), and working in the private sector (61.6%). Around one-third earned between 30,001 and 50,000 baht monthly. The biggest reason for purchasing property was cited as being for the buyer's own residence (30.5%), followed by acquiring property as an asset (15.2%), and improving travel convenience (12.6%). Investment demand declined significantly to 10.3%, from 18.4% last year. The preference shifted notably towards new properties, with 46% indicating an intent to buy only new homes, up from 38.9%. Interest in secondhand homes dropped to 4.3%, from 8.3% a year earlier. Single detached houses remained the most sought-after property type, capturing 41.2% of demand, particularly in the 3.01–5 million baht range. Condos and townhouses followed in popularity. In terms of budget, 83.2% of respondents sought homes priced under 5 million baht. The most desired price bracket was 2.01–3 million baht, accounting for 25.1% of responses. Non-provincial Bangkok city continued to dominate location preferences with 59.9% of demand, particularly in areas with easy access to workplaces like Bang Na, Bang Kapi, and Lat Phrao. Demand from younger generations led by Gen Y and Z is continuing to drive the market. However, interest in condos has declined across all age groups, except for buyers aged 55 and older, who leaned towards condo investment.
The Star
27-05-2025
- Business
- The Star
China, Myanmar and Russia lead foreign condo transfers in Thailand in Q1 2025
BANGKOK: In the first quarter of 2025, the Real Estate Information Center (REIC) reported a slight slowdown in foreign condo transfers in Thailand, with Chinese buyers still leading the way. However, Myanmar saw a remarkable rise, jumping to second place, while Russia increased its transaction value despite a slight decline in unit transfers. Amid global economic volatility and cautious buyer sentiment, both domestic and foreign, REIC revealed that 3,919 foreign condo units were transferred in the first quarter of 2025, totaling 16.39 billion baht. This represents a slight decrease compared to the same period last year, with foreign ownership in Thailand's real estate market holding steady at 29.3 per cent of the total transaction value. China continues to dominate with 1,481 units transferred, valued at 6.12 billion baht (US$0.19 billion), though this marks a 19.2 per cent decline in transfers. This drop reflects a more cautious approach among Chinese buyers due to economic conditions in China and a global slowdown in foreign investments. Myanmar saw an impressive 12 per cent increase in the number of condo transfers, securing second place. However, the value of these transactions fell by nearly 30 per cent. This surge may be attributed to increased demand from Myanmar investors, driven by economic growth and housing demand in Bangkok. Russia showed a 6.9 per cent increase in transaction value, although the number of units transferred declined slightly. The rise in value likely reflects higher-value purchases by Russian investors, particularly in large cities where luxury real estate is developing. This data indicates that foreign buyers in the Thai real estate market are still cautious due to the slow recovery of the global economy, as well as a decline in investment from many countries, including China, the UK and Germany. In terms of transaction value, China remains in first place, followed by Myanmar and Russia. Some countries, such as Taiwan and the UK, have seen increases in transaction value, despite a decline in the number of units transferred. The changes observed in the Thai real estate market in the first quarter of 2025 show that, despite global economic uncertainties, Thailand's real estate market remains attractive to investors from various countries. The continued growth in some countries reflects confidence in the long-term potential of the Thai real estate sector, REIC noted. - The Nation/ANN
