In the first quarter of 2024, there was a significant 19.7% drop in nationwide land allocation permits, marking the largest decline in nine quarters. This adjustment came as developers responded to a consecutive decrease in low-rise house transfers.
According to Vichai Viratkapan, the acting director-general of the Real Estate Information Center, the number of low-rise house transfers fell by 18.9% year-on-year to 49,423 units during the same period.
Developers paused new projects in response to the prolonged decline, attributed largely to economic stagnation, reduced buying power, and stricter mortgage regulations.
The decline affected various price brackets, with new unit transfers dropping by 24.5% and second-hand homes by 16.5%. The steepest drops were in the 1.5-2 million baht and 2-3 million baht ranges.
This downward trend in low-rise house transfers has been consistent since the first quarter of 2023, with declines each quarter. The sharp drop in the first quarter of 2024 was the most significant observed since the pandemic began.
The total number of land allocation permits decreased across housing types, excluding single detached houses, which recorded a 10.1% increase. Townhouses experienced the most substantial decline due to oversupply in lower-priced segments with weak demand.
