Secondhand Homes Set to Lead Bangkok’s Housing Market Through 2027 – Thailand Business News

The share of secondhand residential property transactions in Bangkok and its neighboring regions has risen significantly, climbing from 38% in 2019 to 56% in the first half of 2026. Experts predict that this trend will continue into late 2026 and throughout 2027, as economic pressures such as elevated household debt, stagnant income growth, and stricter lending standards from banks influence consumer behavior. Additionally, the pricing of secondhand homes remains considerably lower than that of new builds, making them an attractive option for buyers with constrained budgets.

In the last four years, secondhand condominiums have represented 46% of all secondhand residential transactions. In the first half of 2026 alone, there were 20,724 transfers of secondhand condos, accounting for 49% of the total secondhand residential property transfers. The average transfer price for these condos has remained stable, ranging from 1.6 to 1.8 million baht per unit. This price stability, combined with favorable locations and growing interest from investors, underscores the appeal of secondhand properties.

While the inventory of residential units available for sale saw a decline in the second quarter of 2026, dropping to 196,000 units from a peak of 243,000 in the previous quarter, the potential for oversupply still warrants attention. The absorption rate for secondary residential properties in Bangkok showed signs of recovery during this period, but ongoing new supply could lead to market imbalances.

Issues related to debt are prompting a greater number of secondary residential units to enter the market through the Department of Legal Execution. Additionally, specialized financial institutions, commercial banks, and asset management firms have contributed to this influx. The second quarter of 2026 saw 63,753 residential units listed for sale by these entities, marking the highest level in the last ten quarters. Although demand is slowly absorbing these units, the steady addition of new listings raises concerns about potential oversupply.

A recent survey conducted by SCB EIC in 2026 revealed a growing interest in secondhand housing, with over 70% of prospective homebuyers planning to purchase within the next five years expressing a preference for such properties across various types and price ranges. This figure reflects an increase from the previous year, highlighting a shift toward prioritizing value for money. Buyers are increasingly considering factors like usable space, location, condition, and price. Notably, there has been a marked rise in interest for secondhand properties priced over 10 million baht, suggesting that the appeal of secondhand housing is expanding beyond lower and middle-income groups to include those with higher incomes as well.

The availability of secondary housing is vital for sustaining the supply chain and aiding in the recovery of the housing market. However, new project launches require a careful approach. Real estate platforms and agents have the opportunity to enhance their services, utilizing data analytics to streamline the customer experience, which could lead to increased transactions and revenue from diverse service offerings. Moreover, companies that buy, renovate, and resell secondhand homes may find increased opportunities, although they will face competition from real estate developers who are likely to enter the secondary market through their own platforms.

To bolster the secondhand housing market, the government could implement initiatives such as tax incentives, low-interest loans, and financing options for renovations. Establishing a comprehensive database that accurately reflects appraised and transaction prices of secondhand homes could help build market confidence. Accelerating the sale of existing secondhand housing inventory would encourage developers to consider launching new projects, thereby stimulating the overall housing market and promoting a quicker recovery.

The significant volume of secondary housing on the market necessitates that real estate developers exercise caution when planning new developments. In assessing potential new projects, developers must take into account the existing supply, absorption rates, and pricing of secondary housing in the respective areas.