A Crisis of house prices skyrockets. Thais have to work for an average of 21 years to get a house

KASIKORN RESEARCH CENTER has released data reflecting the housing crisis in Bangkok, revealing that housing prices in Thailand are 21 times higher than the average household income, or about 21 years of working to buy a house. This situation not only reflects problems in Thailand but also similar crises in many major cities in Asia-Pacific.

Housing prices are skyrocketing

The increase in housing prices in Bangkok and major cities of Thailand is due to numerous factors affecting both the economy and real estate development. The average housing price in Bangkok continued to rise, particularly during 2018-2024, new housing prices nationwide rose 9.1% per annum on average, while wages rose only 1.2% per annum, reflecting the imbalance between real estate price growth and slow income growth.

Challenges in ownership of housing sites

Housing affordability has become a major challenge for Bangkok residents and Thais. Housing prices that are 21 times higher than average income mean that it may take 21 years for Bangkok residents to save enough money to buy a house, regardless of the rising cost of living and debt.

A factor in the rise in real estate prices

The rise in housing prices cannot be explained by a single factor, but it is caused by several common factors such as:

The cost of developing the project is high: The construction cost of developing real estate projects in Bangkok has steadily increased, including rising land and construction material costs. As a result, new housing prices are likely to rise.
A high demand for housing: Urban expansion and population growth in Bangkok have increased demand for residential property, but supply growth has failed to keep pace with this demand, resulting in higher prices.

Income does not increase with real estate prices: People’s income has increased slowly compared to the increase in housing prices, resulting in a decline in purchasing power.

Compared to other cities in the Asia Pacific

Compared to other cities in the Asia-Pacific region, the difficulty of owning a home in Bangkok is not different from many cities with high housing prices such as Ho Chi Minh City (25.3 years), Hong Kong (25.1 years), and Manila (25 years). However, cities with the world’s highest housing prices, such as Seoul (17.8 years), Tokyo (14.3 years), and Sydney (12.8 years), have less time to buy homes than Bangkok.

The ability to buy a house in the future

In the future, the ability to purchase a home in Bangkok continues to challenge many factors, such as:

Economic uncertainty: The economic situation that has not fully recovered may prevent income from increasing as expected and make it difficult to buy homes.
A high burden of household debt: The high level of debt makes it difficult to borrow money to buy a home.

Low confidence in the economy: Despite the government’s measures, confidence in the real estate market has not fully recovered.

Solutions for the problem

To make it easier for Thai people to own their homes, many aspects should be undertaken.

A monetary and credit policy: Banks and financial institutions should adopt a flexible loan policy that facilitates access to public funds, especially for those with low incomes.
Control of land prices: The government should consider policies to control land prices and promote the development of affordable housing.
Promotion of development of residential projects: Real estate developers should adjust their project development strategies to meet changing market demand.

Careful financial planning: People should plan their finances carefully and study thoroughly before deciding to buy a home.

Housing prices in Bangkok are 21 times higher than the average household income, a warning sign of the crisis in homebuyers, especially younger generations and low-income earners. This problem requires cooperation from all sectors, including the government, the private sector, and the public to create opportunities for all Thais to own their own homes.

References from
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