DDproperty's Consumer Sentiment Survey asks what makes the local residential property market tick.
DDproperty, one of Thailand's leading property portals, has disclosed the findings of its most recent Consumer Sentiment Survey which real estate developers, sellers and buyers alike might find useful.
Its first survey was conducted in 2009, and continued on a quarterly basis until H2 2016, when it became half-yearly.
Essentially, the survey aims to provide insights into the prevailing mood and attitudes towards the local property market.
The latest Thailand survey involved over 800 respondents up and down the country.
The first part of the survey focused on property affordability. The survey found that, as of the second half of 2018, 66% of respondents were satisfied with the current real estate climate in Thailand. 33% liked the fact that the market was not overpriced. 29% said they liked that prices keep rising. 24% said that low mortgage interest rates attracted them. 23% liked the long-term prospects for capital appreciation. 22% approved of the financing options.
Expensive properties, high interest rates, and weak economy were the main reasons for dissatisfaction. 72% said that the poor performance of the economy made them dissatisfied with the real estate climate. 70% said that prices kept going up too fast and 64% said that properties were overpriced. 48% were dissatisfied with high interest rates and 27% were dissatisfied with restrictive and unfavourable government policies.
As for affordability, 39% of the survey group in Thailand said it would be difficult for them to buy a property. 47% said that they were reasonably placed to buy property while 14% said that they were definitely able to buy.
56% indicated that they currently own a home. 29% said that they aimed to buy a home within the next year. 26% said that they lived in a home owned by their parents. 9% said that they lived in a rented home or were looking to move into one.
What are people's priorities when buying a property? 81% say that the most important factor is location. 44% rate security and safety of the location. 33% said that infrastructure and availability of amenities is important and 36% rated the price per square metre a significant factor. For 15% of the respondents mortgage and financial eligibility are critical. 17% say that facilities within the property are important. 15% say they consider design and construction important factors. 60% say that proximity to public transportation networks helps them decide. 51% of respondents consider the distance from their workplace important. 38% indicate that proximity to hospitals and clinics is important. 32% like having shopping centres near them. 25% look for parks and 22% look for good places to eat.
Asked whether they were seeking new properties, resale properties or both, 46% said that they were only looking for brand-new properties. Only 9% said that they were looking for resale property alone but 45% said that they would consider both.
Not surprisingly the most popular area people were looking to buy property was Bangkok, with 38%. 19% said that the Ratchada, Ladprao, Rama 9 areas were their target. 15% identified mid-to-inner Sukhumvit (Phrakanong/Onnut/Udomsuk. 13% were looking at outer Sukhumvit, Bangna and Bearing and 13% were looking at Aree and Phaholyothin.
What are the factors that stop people getting on the property ladder? 43% said that they are simply not ready to purchase a property. 33% said that properties were too expensive for them. 24% said that they already owned a sufficient property. 22% just couldn't find a suitable place to buy. 18% said that they didn't have enough money for a down payment.
The survey also found some interesting insights into millennial behaviours. Roughly one in four millennials are still living with their parents. 47% of respondents said they would stay in the family home to take care of their parents. 41% said would stay because they didn't have enough savings to move out. 39% were waiting to get married. For 38% of respondents, the family home was already big enough. 33% said they'd rather keep their money because properties are too expensive.
Of those who want to buy, how do they get enough money together? 56% said that they have a monthly saving strategy. 35% said that they saved whenever they could. 30% had an investment plan. 22% said that they work more than one job to be able to save. 12% said that they had not even started saving.
54% of respondents expected to be 35 years or older when they moved out of the family home and 29% expected to be 28-30 years old.
More advice and insights at www.DDproperty.com.
