How rising interest rates are impacting Bangkok’s residential market

The rising interest rates in Bangkok have led to a decrease in affordability for housing, causing challenges for local buyers. The sales performance of the housing market has been affected, with a decrease in pre-sales rates.

Key Takeaways

• Rising interest rates and housing affordability challenges are impacting Bangkok’s residential market, leading to a decrease in pre-sales rates and mortgage rejections for units priced under THB 5 million.
• The rental market in Bangkok’s Central Business Area is strengthening, driven by spillovers from cautious buyers and the return of expatriates, indicating a potential shift towards rental properties as a short-term option for first-time buyers.
• The rental housing market in Bangkok is set to evolve, with factors such as changing buyer behavior, a growing urban population, the expatriate community, and worsening housing affordability creating…