28 May 2023
house prices in Thailand Rising faster than Thai people’s income / by Invest Man
The current trend of people these days Often turn to renting houses instead of buying and owning them Many people have personal reasons, so that it is easier to move around at work, or seeing that renting is cheaper.
But there aren’t many other people’s reasons. that they do not have enough power to buy houses
Invest Man will tell you about it.
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The affordability of people’s housing in a country can be roughly measured by the Price to Income ratio.
It is calculated by dividing the house price by the household’s annual income.
If this ratio is lower, it means that the ability to afford housing for the people of the country is higher.
Data from Numbeo reveals that Thailand’s Price of Income in 2023 is 24
This means that on average house prices in Thailand are 24 times the annual household income.
Did you know that this figure is on par with South Korea, and also one of the 20 countries with the lowest housing affordability among the 107 countries surveyed?
So why is it so?
First of all, house prices have risen. more than the income of the population
If we go to try Adjustment of house prices in Thailand during the last 10 years.
– Detached houses increased by an average of 4.8% per year.
– Townhouses increasing by an average of 6.3% per year.
– Condominiums or condominium increased by an average of 6.6% per year.
The more areas with high population density. And it is also the center of the economy, such as Bangkok or large cities of different regions, the price of houses and land may rise more than in general.
and compared to the average per capita income of Thai people which was increasing by only 3.6% per year per year during the same period
It can be seen that the increase in Thai people’s income in the past cannot keep up with house prices
Later, the interest rate of the policy tends to increase during this year.
That being said, most people need to rely on bank loans. to buy a house
with the tendency to raise the interest rates of that policy Causing the borrower to bear more of the interest burden of borrowing
because most The early years of home equity loans are fixed interest rates, while the later years are variable interest rates. All banks will increase according to the policy interest rate.
As a result, the bank has to consider the debtor’s capacity more thoroughly. and stricter lending As a result, the number of people asking for a loan to buy a house has fallen.
All this This is the reason why it is more difficult for Thai people to own houses.
However, Thailand is considered to be rather lucky.
because we still have a population from neighboring countries he came to work as an assistant in the construction industry