# Thai Condominium Market Faces “Perfect Storm”

- Link: https://www.thailand-business-news.com/real-estate/182210-thai-condominium-market-faces-perfect-storm
- Published: 2024-12-31T08:07:00+07:00
- Author: Daniel Lorenzzo

The Thai Condominium Association has characterized **2024** as an especially challenging
year for the real estate sector. Rising interest rates, high land prices, and strict
Loan-to-Value (LTV) regulations have notably hindered consumer access to mortgages.

## Key Takeways

 * The Thai Condominium Association forecasts a challenging 2024 for real estate,
   citing high interest rates, land prices, and strict Loan-to-Value (LTV) rules
   as barriers to mortgage access. These factors, alongside geopolitical tensions
   and a strong baht, disproportionately affect the mid-to-lower income housing 
   market, leading to a projected 25% drop in presales and an 8% decrease in property
   ownership transfers.
 * Despite a surge in building completions adding 87 billion baht in transfers during
   Q4, annual ownership transfers are expected to decline by 5-7%, alongside a 7%
   decrease in new mortgage lending. While international interest in destinations
   like Phuket and Bangkok offers some stability, domestic demand remains weak under
   current lending conditions.
 * A modest recovery is projected for 2025, with sales potentially growing by 5-
   10%. However, high interest rates and stringent LTV policies continue to limit
   access for middle- and lower-income buyers. The association calls for government
   intervention to lower interest rates, adjust LTV regulations, and clarify policies
   on foreign investment and taxation to enhance housing accessibility and economic
   growth.

These challenges, compounded by geopolitical tensions and a strong baht earlier 
in the year, have most impacted the mid-to-lower income housing market.

ADVERTISEMENT

Presale sales for 2024 are projected to decline by **25%**, with many segments reaching
record lows. Property ownership transfers fell by **8%** in the first nine months
of the year. However, a surge in new building completions during the fourth quarter
added approximately **87 billion baht** in transfers, equivalent to the combined
total of the previous three quarters.

Despite this, annual ownership transfers are expected to drop by **5-7%**, with 
new mortgage lending also declining by around **7%**.

### Related**Posts**

###  󠀁[Secondhand Homes Set to Lead Bangkok’s Housing Market Through 2027](https://www.thailand-business-news.com/real-estate/336863-secondhand-homes-set-to-lead-bangkoks-housing-market-through-2027)󠁿

###  󠀁[Asia Pacific Real Estate Investment Hits Record $92.5 Billion in H1 2026](https://www.thailand-business-news.com/real-estate/322580-asia-pacific-real-estate-investment-hits-record-92-5-billion-in-h1-2026)󠁿

###  󠀁[Thailand’s Foreign Investment Paradox: Open for Business, Closed to Homebuyers](https://www.thailand-business-news.com/business/316479-thailands-foreign-investment-paradox-open-for-business-closed-to-homebuyers)󠁿

###  󠀁[SEC hearing on proposed REIT borrowing and benefit rules amendments](https://www.thailand-business-news.com/investment/279784-sec-hearing-on-proposed-reit-borrowing-and-benefit-rules-amendments)󠁿

The downturn in 2024 sales is anticipated to affect revenue recognition for the 
next 1-2 years. However, international buyer interest has provided some stability,
particularly in major tourist destinations like **Phuket, Chonburi, Chiang Mai,**
and **Bangkok**. These foreign purchases have helped offset declining domestic demand,
which remains weak due to restrictive lending conditions.

The association predicts a modest recovery for **2025**, with sales expected to 
grow by **5-10%**. However, it warns that high interest rates and stringent LTV 
policies continue to constrain middle- and lower-income buyers, preventing broader
access to homeownership for Thai citizens.

To revitalize the market, the association has called on the government to lower 
interest rates and revise LTV regulations to stimulate domestic purchasing power.
Additionally, clearer policies on foreign investment and tax collection could support
both economic growth and improved housing accessibility for local buyers.

[Source link ](https://thainews.prd.go.th/nbtworld/home/)