2023-05-28 03:01:43
28 May 2023
house prices in Thailand Increase faster than Thai people’s income / by Invest Man
The current trend of people nowadays Often turn to renting housing instead of buying and owning Many people have personal reasons, such as being easier to move around at work, or seeing that renting is less expensive.
But there are not many other people’s reasons. who do not have enough power to buy housing
Invest Man will tell you regarding it.
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A rough measure of the housing affordability of people in a country can be measured by the Price to Income ratio.
It is calculated by dividing the housing price by the annual household income.
If this ratio is lower, it means that the ability to afford housing of people in the country is higher.
Data from Numbeo reveals that in 2023, Thailand’s Price to Income is at 24
This means that on average housing prices in Thailand is 24 times the annual household income.
Did you know that this figure is on par with South Korea, and it also ranks among the top 20 countries where people have the lowest housing affordability among the 107 countries surveyed?
So why is it like that?
First of all, housing prices have gone up. more than the income of the population
If we go try The adjustment of housing prices in Thailand in the past 10 years.
– Single-detached houses increased an average of 4.8% per year.
– Townhouses increase at an average of 6.3% per year.
– Condominiums or condominiums increased at an average of 6.6% per year.
The more areas with high population density. And is also the center of the economy, such as Bangkok or major cities of various regions, may have the price of housing and land rising more than overall.
and when compared to the average per capita income of Thai people which increased only 3.6% per year per year during the same period
It can be seen that the increase in the income of Thai people in the past Can’t keep up with housing prices
Later, the policy interest rate tends to increase during this year.
Having said that, most people need to rely on bank loans. to buy a house
with the tendency to raise interest rates that policy Causing the borrower to bear more interest burden from borrowing
because most The early years of home equity loans are fixed interest rates, while the latter years are floating interest rates. Each bank will increase according to the policy interest rate.
As a result, the bank has to consider the debtor’s ability more thoroughly. and more stringent in lending As a result, the number of people requesting a loan to buy a house has decreased.
All of this This is the reason why it is more difficult for Thai people to own housing.
However, Thailand is considered to be somewhat fortunate.
because we still have population from neighboring countries came to work as an assistant in the construction industry
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