The Mortgage Association said that after the outbreak of COVID-19, the total amount of property that was foreclosed on (non-performing asset NPA) increased. The latest data for April 30, 2022: an increase of 46% compared to the same period in 2019, which was the period before COVID-19.
Confiscated houses are cheaper than a new house by at least 20-30%, while prices for new houses have now increased by 5-10% due to higher construction costs.
The Real Estate Information Center reported that measures to stimulate the real estate market, which cover secondary properties (purchase of secondary real estate at a price of no more than 3 million baht by reducing the commission for transfer and mortgage to 0.01% by the end of 2022) affected the increase in the number of offers on the secondary housing market.
It can be seen that the number of units and the cost of secondary housing in the first quarter of 2022 increased by 20.2% and 25.1%.
In this regard, the largest number of houses put up for sale on the secondary housing market falls on individual mansions, followed by condominiums and townhouses. Provinces with the largest number of second homes for sale: Bangkok, Chonburi, Chiang Mai, District G, Prachuap Khirihan, Phuket and Nakhon Ratchasima.
Bangkok has the highest number of objects for sale per month – 54,627 residential units, or 39.6% of the country. The average monthly cost is 581 billion baht, or 61.9% of the value of all secondary apartments for sale.
Demand also increased, which affected the number of transactions. It was found that 49,227 secondary apartments worth 96 billion baht were sold in the first quarter of 2022.
The share of secondary real estate at a price of less than 1.5 million baht is more than 80%. Which is explained by the fact that it is difficult to find a property with such a price in the market of new buildings.
While the secondary at a price of 2-3 million baht is sold worse, as there are many new buildings offering apartments and houses at this price.
In addition, new housing prices are likely to rise soon due to the rising cost of raw materials and production as a result of rising oil prices and inflation. Therefore, people who want to buy a house may consider buying a second home.
Thus, it can be concluded that in 2022, second homes will play an increasingly important role in the expansion of the housing market.