Bangkok: The GHB Real Estate Information Center has reported a slowdown in the housing market during the first quarter of 2025. This trend is attributed to the prevailing economic conditions, with the Real Estate Information Center highlighting government initiatives to temporarily reduce transfer and mortgage fees to 0.01%, relax LTV criteria, and mitigate trade tensions, which are expected to aid the real estate sector's recovery from the second quarter of 2025. Notably, the recent earthquake did not adversely impact new loan disbursements in April, which amounted to 1,804 million baht.
According to Thai News Agency, Mr. Kamolpop Virapala, Managing Director of the Government Housing Bank and Acting Director of the Real Estate Information Center, disclosed that the housing market exhibited a decline during the first quarter of 2025 compared to the previous year. However, government interventions aimed at stimulating the real estate sector, including reducing transfer and mortgage fees for properties priced under 7 million baht and the Bank of Thailand's temporary relaxation of LTV criteria, are expected to positively influence the housing market and the broader economy in the coming quarters.
The Real Estate Information Center reported that residential property transfers nationwide totaled 65,276 units in Q1/2025, marking a 10.5 percent decline with a total value of 181,545 million baht, down 13.0 percent year-over-year. While most regions experienced a slowdown, some provinces like Rayong and Surat Thani saw an increase in both unit numbers and value. Conversely, Phuket saw a rise in units but a decrease in value, while Samut Prakan experienced the opposite. Provinces such as Bangkok, Chonburi, and Chiang Mai faced decreases in both units and value.
The slowdown also impacted housing loans, with new personal housing loans totaling 109,368 million baht in Q1/2025, a 10.0 percent decrease from the previous year. Despite this, the Government Housing Bank maintained a substantial market share of 42.8 percent in new housing loans. The transfer of condominium ownership by foreigners saw a minor decline, with China, Myanmar, and Russia being the top three nationalities involved in such transfers.
Projections for the housing market in 2025 suggest a slight slowdown or stabilization compared to 2024. The number of housing transfer units is expected to decrease by 0.3 percent, while the value of transfers might drop by 0.8 percent. The government's continued support through reduced fees and relaxed LTV criteria, along with easing trade tensions, are anticipated to provide some relief to the market.
Despite risks such as high household debt and restrictions on foreign asset holdings, the impact of the March 28 earthquake on the housing market was minimal. The increased condominium loan amount in April indicates sustained consumer confidence. Additionally, non-performing loans showed a tendency to rise in Q1/2025, a common trend early in the year due to seasonal expenses.