BANGKOK: Amid a slowing economy and intense competition in the property market, developers of housing projects are accelerating promotional campaigns offering discounts, giveaways and added incentives.
These include price cuts, support for expenses on the ownership-transfer date and all-inclusive free extras, aimed at encouraging purchase decisions and closing sales more quickly.
The second-hand home market is being directly affected as buyers increasingly compare the value offered by new and second-hand properties.
As a result, many owners and brokers selling second-hand homes have had to monitor movements in the new-home market and reduce their asking prices accordingly to strengthen their competitiveness and clear stock.
The situation shows that competition in the housing market is not confined to new-home developers, but is also putting pressure on the second-hand market, where sellers must set prices in line with market conditions and purchasing power that remains fragile.
Pornnarit Chounchaisit, president of the Thai Real Estate Association, told Thansettakij that the housing market in the second half of 2026 (2H26) remained sluggish and could deteriorate further without government measures to support it.
He viewed the new-home and second-hand markets as being in much the same position, with both trying to keep their businesses going because they depend on the same financial institutions and face similarly strict lending conditions.
Although demand remains in both segments, mortgage applications are often rejected because buyers are assessed as lacking sufficient purchasing power or income for homes at those price levels.
Both markets are also rushing to clear stock through similar discount and incentive campaigns, while benefiting from the same reductions in ownership-transfer and mortgage registration fees.
The main difference is that second-hand homes may be older, but can offer an advantage in the choice of urban locations.
With purchasing power severely weakened, household debt still high and financial institutions not extending credit, both new and second-hand homes are inevitably being affected by the same risk factors.
Prasert Taedullayasatit, honorary president and adviser to the Thai Condominium Association, said the property market would remain sluggish in 2H26, with stock worth more than 1.3 trillion baht, comprising more than 200,000 units in Bangkok and its surrounding provinces.
The extension of government measures provides a positive factor, while developers are delaying project launches and running campaigns to clear existing stock, particularly by waiving transfer fees and offering all-inclusive free extras to attract buyers.
Even with lower transfer and mortgage registration fees, the campaigns reflect weakened purchasing power, as people are reluctant to make decisions because they lack confidence in the economy.
The biggest hurdle is strict lending by financial institutions, which is affecting the new-home and second-hand markets.
Soonthorn Sathaporn, president of the Housing Business Association, said the property market in 2H26 was likely to perform slightly better than in 1H26, although any recovery would be gradual.
Important positive factors include the government’s extension of reduced ownership-transfer and mortgage registration fees and the Bank of Thailand’s relaxation of loan-to-value (LTV) rules, which help ease buyers’ financial burdens and encourage purchase decisions to some extent.
Another important positive factor is the government’s extension of the 0.01% ownership-transfer and mortgage registration fees for homes priced at no more than seven million baht, together with the easing of LTV rules.
This is consistent with data from the Real Estate Information Centre which found that 72,583 residential units were transferred in the first quarter of 2026, up 11.2% from the same period a year earlier.
The transfer value reached 187.182 billion baht, an increase of 3.1%, showing that housing demand remains, although buyers are increasingly choosing price levels that match their purchasing power.
Negative factors, however, still carry considerable weight, including the slow economic recovery, high household debt and fragile purchasing power.
Most importantly, commercial banks remain strict in approving loans.
A survey by the Housing Business Association found that the rejection rate for retail borrowers was about 40% in 2025, while the average rate in 1H26 remained at about 40%.
The figures clearly show that the main problem facing Thailand’s property market is not demand, but access to credit.
Buyers remain in the market, but many cannot obtain financing.
Unless the credit bottleneck is resolved, the market’s recovery will remain limited even if further measures are introduced to stimulate purchasing power.
Many developers are carrying unsold stock from previous periods and need to use price reductions and added benefits, including waived transfer fees, free furniture and interest support, to accelerate purchase decisions. — The Nation/ANN
