The homebuyer confidence index in 2023 fell from last year as faith in respondents' financial status weakened, leading to a perception that it was not the right time to invest in high-value items, according to recent research.
Sumitra Wongpakdee, managing director of property research and consultancy Terra Media and Consulting, said the consumer confidence index in 2023 was 76, down from 80 in 2022.
"Consumers were satisfied with the Thai economy, but confidence in their current financial status dropped compared with last year," she said. "Professionals were the only career group expressing low confidence in their income."
Ms Sumitra said one reason professionals might not buy houses next year was the soaring prices.
During the pandemic, some of them earned more income than usual and might have already purchased a house in the past two years.
Terra Media conducted a survey for the consumer confidence index among 2,000 prospective homebuyers online from Oct 1 to Nov 8.
Despite the drop, the 2023 index was higher than those of 2020 and 2021, where the index was 68 and 44, respectively.
The survey found that 42% of the respondents planned to buy a residential unit within three years.
Among them, 78% aimed to buy a single detached house, 47% wanted a townhouse, 27% preferred a condo and 20% expressed interest in other options.
Some 63% set a budget of 5 million baht or lower to buy a new house, 17% set it between 5 and 7 million baht, 8% between 7 and 10 million baht, 5% between 10 and 15 million baht and 3% each at 15-20 million baht and more than 20 million baht.
More than half or 54% had a family size of 2-3 people, 37% were second-time buyers, 44% were seeking a better and safer community, 37% wanted to live near mass transit lines and 35% sought facilities with a pool, fitness centre and green space.
"When asked about the most important factors for buying a house, three factors -- security system, after-sales service and community and environment -- were still the most crucial -- the same as last year," she said. "This year material was added."
Single detached houses were the most popular choice among baby boomers and generation Y, with 70% and 69%, respectively, choosing them.
Most of them had families of 2-4 people. Around 36% were second-time buyers and 21% were third-time buyers.
Top locations for those with a budget of 5 million baht and lower were Bang Yai-Bang Bua Thong in Nonthaburi, Samut Prakan and Rangsit-Klong Luang in Pathum Thani.
For those with a budget of 5-10 million baht, top locations were Prachachuen-Rattanathibet in Bangkok and Nonthaburi, Bang Na-Bang Phli in Samut Prakan and Bang Yai-Bang Bua Thong.
Those with a budget of 10 million baht or more wanted a single detached house in Ratchapruek-Nakhon In in Nonthaburi and Bang Na-Bang Phli.
Townhouses were the most popular choice among generation X and generation Z at 30% and 29%.
Top locations for those with a budget of 3 million baht and lower were Bang Yai, Bang Phli and Rangsit-Khlong Luang.
Those with a budget of 3-7 million baht preferred Bang Yai-Bang Bua Thong, Bang Na-Samut Prakan and Chatuchak-Prachachuen.
Those with a budget of 7 million baht or more wanted a townhouse in Rattanathibet-Tha It and Samut Prakan.