Market for pre-owned homes grows

Surge in houses for sale at B3m or less

published : 9 Feb 2023 at 07:41

newspaper section: Business

The number of second-hand homes for sale nationwide costing 3 million baht or below posted the highest increase in the fourth quarter last year as the property measures for the segment expired at the end of the year.

Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the cuts in transfer and mortgage fees for second-hand homes ran from Jan 18, 2022 to Dec 31, 2022.

"The measures urged more supply in these pricing ranges to come to the market," he said. "Compared with the fourth quarter of 2021, when the measures applied to just new units, their year-on-year rise in the fourth quarter last year was large."

According to REIC, the number of second-hand homes offered for sale nationwide in the fourth quarter last year priced below 3 million baht soared by 30.7% to 102,994 units from 78,795 units in the same period of 2021.

Compared with the third quarter of 2022, the amount rose by 6.3%. The largest increase was those priced below 1 million baht with a surge of 10.8%, followed by those priced between 2.01-3 million baht with an increase of 6.3%.

Mr Vichai said the supply was in line with the number of second-hand units transferred between January and November 2022 which saw the largest increase in units priced below 3 million baht.

The largest increase in transfers was in the category of homes costing 2.01-3 million baht (36.2%), followed by those priced below 1 million (25%), 1.01-1.5 million (24.7%) and 1.51-2 million (19.4%).

REIC gathered data concerning second-hand homes nationwide offered for sale through major property websites and those owned by financial institutions, asset management firms and the Legal Department.

As of the end of the fourth quarter of 2022, the total number of second-hand homes offered for sale nationwide rose 13.4% year-on-year to 162,787 units worth a combined 860.4 billion baht, down 7.2%.

The number of units priced above 3 million baht offered for sale in this quarter declined across the board when compared with the third quarter.

The largest decrease was units priced above 10 million baht which fell by 16.4%, followed by those priced 7.51-10 million (14.6%), 5.01-7.5 million (11.7%) and 3.01-5 million (1.6%).