Thais Put Home Ownership Plans on Hold Amid Economic Worries

A growing number of Thais are putting their homeownership dreams on hold, with a significant 56% of consumers now reporting no plans to buy a house within the next five years. This marks the highest level in four years, reflecting mounting economic anxieties that are impacting major purchasing decisions.

Economic concerns emerged as the leading reason for this reluctance, cited by 15% of respondents, a notable increase from 7% a year prior. Affordability, driven by income levels and household expenses, remains a critical factor, though slightly less prominent than last year, mentioned by 15% of those surveyed. The perception of housing prices being excessively high more than doubled, reaching 9% compared to 4% in the previous year.

Concerns about household debt and limited access to mortgage financing persist, though at lower percentages of 7% and 1%, respectively. Some prospective buyers are hesitant to even apply for mortgages, fearing rejection or assessing their financial standing as insufficient. This sentiment was captured in surveys conducted by the Siam Commercial Bank Economic Intelligence Center (EIC).

Respondents identified rising living costs outpacing income growth as a major hurdle, with 32% urging government intervention. Household debt burdens (29%) and high new home prices (16%) were also key concerns. Additionally, 15% pointed to stricter mortgage lending criteria. To improve access to homeownership, 44% of respondents called for government support, such as soft loans and affordable housing programs, while nearly a fifth sought assistance for existing mortgage holders facing repayment difficulties.