Homeowners confidence hits rock bottom- is your dream home still a dream?
The 2023 Homebuyer Confidence Index has taken a nosedive, leaving prospective homeowners questioning their property dreams. Recent research unveils the shocking truth behind this unexpected slump in optimism.
Despite a generally content outlook on the Thai economy, the Consumer Confidence Index for 2023 has fallen to 76, a noticeable dip from the previous year’s score of 80.
Sumitra Wongpakdee, managing director of Terra Media and Consulting, pinpoints a decline in confidence regarding respondents’ current financial status as a major cause.
“Professionals were the only career group expressing low confidence in their income.”
Professionals, typically considered high-earning individuals, are hesitant to invest in property in the upcoming year due to skyrocketing prices. The pandemic saw a surge in income for some, potentially leading them to already secure a property in the last two years.
Terra Media’s survey, conducted among 2,000 prospective homebuyers, exposes this unease, pointing towards a potential slowdown in the real estate market.
Silver Lining Amidst the Slump
While the Homebuyer Confidence Index for 2023 dropped from the previous year, it still stands higher than the gloomy figures of 2020 and 2021. The survey indicates that 42% of respondents are eyeing a residential purchase within the next three years.
Breaking down preferences, 78% aspire to own a single detached house, 47% lean towards townhouses, 27% fancy condos, and 20% express interest in various other options.
A significant 63% of prospective buyers set a budget of 5 million baht or lower for their new home. The survey reveals a diverse range, with 17% allocating between 5 and 7 million baht, 8% between 7 and 10 million baht, and 3% daring to venture beyond 20 million baht.
Demographics play a pivotal role, with 54% of respondents having a family size of two to three people. Notably, 37% are second-time buyers, driven by a quest for a better and safer community, accessibility to mass transit, and the inclusion of amenities like pools, fitness centres, and green spaces.
The most critical factors for homebuyers remain consistent, with security systems, after-sales service, and the community and environment topping the list. Notably, this year sees the addition of materials as a key consideration.
Breaking down choices by generation, single detached houses reign supreme among baby boomers (70%) and Generation Y (69%). Meanwhile, generation X and Z find townhouses more appealing at 30% and 29%, respectively, reported Bangkok Post.
Location, location, location
For those with a budget under 5 million baht, Bang Yai-Bang Bua Thong in Nonthaburi, Samut Prakan, and Rangsit-Klong Luang in Pathum Thani top the list. As budgets expand to 5 to 10 million baht, Prachachuen-Rattanathibet in Bangkok and Nonthaburi, Bang Na-Bang Phli in Samut Prakan, and Bang Yai-Bang Bua Thong become prime locations.
For the affluent with a budget exceeding 10 million baht, Ratchapruek-Nakhon In in Nonthaburi and Bang Na-Bang Phli beckon with promises of single detached houses.
In the budget-friendly townhouse category, Bang Yai, Bang Phli, and Rangsit-Khlong Luang emerge as top choices for different budget brackets.
