Real estate calls for urgent steps

Measures essential to stimulate demand

The new government is being urged to introduce quick-win measures to stimulate housing demand by extending cuts on property transfer and mortgage fees to homes priced above 7 million baht, and also by lowering interest rates.

Prasert Taedullayasatit, president of the Thai Condominium Association, said quick-win measures were essential to stimulate housing demand as the new government announced it would take four months to form and dissolve parliament.

“Strong short-term stimulus measures for the property sector during the new government’s term could revive the housing market and drive the economy in line with the government’s goals,” he said.

The current scheme, which waives transfer and mortgage registration fees for homes priced up to 7 million baht until June 30, 2026, is insufficient to spur demand, particularly in the upper-end segment that has been less affected by Thailand’s economic slowdown.

He said the housing market in the second quarter of 2025 was hit by a perfect storm of factors, including the sluggish global economy and the impact of US reciprocal tariffs.

The March 28 earthquake in Myanmar, which damaged several high-rise buildings in Bangkok, also disrupted the condo market for 2-3 months, while domestic political fragility added further pressure.

According to Mr Prasert, housing property growth figures in the second quarter of 2025 were all in the red, with the value of housing transfers nationwide plunging 14% year-on-year to around 210 billion baht.

Townhouses recorded the sharpest decline, falling 24% to 53.3 billion baht, while condos and single detached houses dropped 10% and 9% to 50.4 billion baht and 106.3 billion baht, respectively.

In Greater Bangkok, the downturn was steeper, with transfer values down 19% to 119 billion baht.

Townhouses led the fall with a 31% drop to 37.2 billion baht, followed by condos, down 14% to 29.5 billion, and single detached houses, slipping 11% to 52.3 billion.

Presales in Greater Bangkok also slumped, plunging 32% year-on-year to 56.7 billion baht, the lowest level since the first quarter of 2012 following the great floods late in 2011.

By unit, only 9,128 were sold — an all-time low since the fourth quarter of 2007.

Townhouses posted the steepest contraction, falling 53% to 16 billion baht, the lowest level since the third quarter of 2010.

Condos fell 28% to 8.4 billion, while single detached houses dropped 13% to 32.2 billion.

New project launches in Greater Bangkok shrank by 51% year-on-year to 55.5 billion baht.

Townhouses posted a dramatic 95% fall to 2.2 billion baht, while condos declined 39% to 7.2 billion, and single detached houses dropped 20% to 46 billion.

“We’re not asking for complicated measures such as changes in laws or regulations, but rather quick-win policies,” said Mr Prasert.

“The waiver of transfer and mortgage registration fees should be extended to all price levels until Dec 31, 2025.”