Second-hand home transfers rise steadily

The proportion of second-hand home transfers in Greater Bangkok has risen for two consecutive quarters, driven by weakened purchasing power attributed to the economic slowdown, according to the Real Estate Information Center (REIC).
Siddhipen Siddharthapong, acting assistant director-general of the REIC, said many homebuyers, particularly in the lower-end segment, were unable to secure homes at the prices they sought and consequently shifted to more affordable options.
“Second-hand homes are generally priced lower than new ones of similar size and location,” she said.
“Given high household debt and interest rates, many homebuyers are opting for more affordable second-hand properties.”
According to the REIC, the number of low-rise houses transferred in Greater Bangkok in the second quarter of 2024 tallied 21,504 units valued at 93.2 billion baht, down by 13.5% for units year-on-year and 5.6% in value.
The largest decreases were for homes transferred by companies, which the REIC assumed to be new homes, with unit numbers declining 22.5% to 9,087, while value dipped 7.8% to 56.9 billion baht.
Homes transferred by individuals, assumed to be second-hand homes, declined by 5.5% to 12,417 units, falling 1.9% in value to 36.3 billion baht.
The proportion of second-hand low-rise houses transferred increased to 57.8% in the second quarter of 2024, up from 57.3% in the first quarter and 53% in the fourth quarter of 2023.
For units, the largest uptick for the period was for units priced greater than 100 million baht and between 80-100 million baht, rising 300% and 150% to four and 10 units, respectively. Both categories were new homes.
Second-hand homes priced greater than 100 million baht posted the largest year-on-year increase in the segment, gaining 125% to nine units.
For new homes priced less than 80 million baht, units priced 20-60 million baht gained, while all others declined, with the largest dip for units priced less than 1 million baht, down by 47.2%.
For second-hand homes, units priced less than 3 million baht, 7.5-10 million baht and 20-60 million baht also fell year-on-year.
Low-rise housing transfers better reflect the market than condos because they involve sales where buyers make decisions within six months because of the shorter construction period, according to the REIC.