Property incentives are needed to boost residential demand during the remainder of the year as the number of housing transfers and sales in the second quarter continued to drop, according to the Real Estate Information Center (REIC).
Vichai Viratkapan, REIC's acting director-general, said the residential market in the first half was still affected by rising interest rates which impacted the affordability of property among members of the public.
"Given that household debt has surged to 90% of GDP, coupled with rising housing prices, residential demand and supply in the first half of the year was significantly influenced by these negative factors," he said.
In the second quarter of 2023, the number of residential units transferred nationwide declined by 4.4% to 91,085 units from 95,285 units year-on-year. This represented a consecutive decline from the first quarter, which saw a decrease of 0.8% to 84,619 units.
The transfer value in the second quarter increased by 0.5% to 258.15 billion baht, led by a 13.6% growth in condos, while that of low-rise houses dropped by 3.8%.
Units priced between 7.51-10 million baht experienced the highest increase in unit transfers, rising by 16%, followed by those priced at 10 million baht and above with a surge of 12.4%.
By categories, all price ranges of low-rise houses had a decline in unit transfers, except for those priced between 7.51 and 10 million baht and 10 million baht and above, which still maintain a growth at 12.2% and 0.2%, respectively.
Condo transfers saw a growth across all price ranges, except for those priced 2.01-3 million baht, which saw a decline of 12.1%. Within this price range, new units saw a decrease of 20.2% while secondhand units grew by 24.1%.
The most substantial growth in condo transfers occurred in units priced above 10 million baht, with a notable increase of 46.7%. In terms of categories, new units soared by 52.4% while secondhand units rose by 33.3%.
The number of condo transfers by foreigners in the second quarter tallied 3,563 units worth 18 billion baht, up 54.3% and 49.4%, respectively. They represented 13.6% and 24.6% of total condo transfers, respectively.
In the first half, it totalled 7,338 units worth 35.2 billion baht, up 65.6% and 57.8%, respectively, which accounted for 14.7% and 24.5% of total condo transfers, respectively.
Buyers from Myanmar made the highest-value condo purchases, with an average price of 7 million baht, while Indian buyers purchased condos with the largest average floor area at 89.8 square metres.
Chinese nationals remained the top buyers of condos, with 3,448 units worth 17 billion baht, followed by Russians (702 units worth 2.55 billion baht), Americans (293 units worth 1.29 billion baht), French (269 units worth 1.12 billion baht) and British (260 units worth 1.28 billion baht).
In the first half, the number of residential units newly launched fell by 11.6% to 64,998 units worth 273 billion baht, down 10.9%, while that remaining for sales rose 2.4% to 291,384 units worth 1.3 trillion baht, up 4.2%.
The number of units newly sold dropped 27.7% to 291,384 units worth 1.3 trillion baht, down 24.1%.
REIC forecasts the number of low-rise housing transfers in 2023 would amount to 251,635 units worth 728 billion baht, plummeting 11.9% and 6.2%, respectively.
The number of condo transfers was projected to reach 84,427 units valued at 249.5 billion baht, dropping 21.2% and 13.5%, respectively.