Confidence among prospective homebuyers in Greater Bangkok increased significantly in the first quarter of 2025, reaching its highest level since tracking began in late 2023.

The housing purchase confidence index (HPCI) rose to 51.7, surpassing the neutral threshold of 50 for the first time, marking a substantial year-on-year increase of 12.5 points from 39.2 and an 8.8-point rise from the previous quarter's 42.9.

The surge in confidence has been attributed to a reduction in the Bank of Thailand's policy rate from 2.25% to 2.00% on February 26, which reduced monthly mortgage payments and enhanced affordability for homebuyers.

Additionally, banks introduced low-interest housing loans early in the year.

A further boost to purchasing sentiment came with the Bank of Thailand's announcement on March 20 of a temporary relaxation of loan-to-value (LTV) rules, effective from May 1, 2025, until June 30, 2026.

According to the Real Estate Information Center (REIC), the proportion of respondents indicating plans to purchase a home within the next year increased to 61.1%, a rise from 50.8% reported a year earlier.

Data was gathered through online and offline surveys of individuals aged over 18 at housing expos and via the REIC website.

The demographic profile of survey participants indicated that 62.1% were women, 47.4% were aged 25–34, 66.4% held a bachelor's degree, and 61.6% were employed in the private sector.

Approximately one-third of respondents reported earning between 30,001 and 50,000 baht monthly.

Primary motivations for purchasing property were cited as homeownership (30.5%), investment assets (15.2%), and improved travel convenience (12.6%).

Notably, the inclination for investment dropped significantly to 10.3%, down from 18.4% the previous year.

A notable shift in preference towards new properties was observed, with 46% of respondents expressing intent to buy new homes, up from 38.9%.

Interest in secondhand homes decreased to 4.3%, compared to 8.3% last year.

The demand for single detached houses remained prominent, accounting for 41.2% of total demand, particularly in the price range of 3.01 to 5 million baht.

Condominiums and townhouses were also popular among prospective buyers.

Budget preferences revealed that 83.2% of respondents were looking for homes priced under 5 million baht, with the most sought-after price range being 2.01 to 3 million baht, making up 25.1% of the responses.

Geographically, non-provincial Bangkok city was the preferred location for 59.9% of respondents, especially areas with convenient access to workplaces, such as Bang Na, Bang Kapi, and Lat Phrao.

The growing demand from younger generations, particularly those from Generation Y and Z, has been a significant driver in the market.

However, interest in condominiums has generally decreased across all age groups, with the exception of buyers aged 55 and older, who have shown a tendency to invest in condo properties.

The data indicates a trend driven by actual end-user demand rather than speculative purchases, which may influence the trajectory of the housing market throughout 2025, as reported by the REIC.