Although the Thai housing market is facing multiple challenges, there are also some positive factors. The government's attitude and stimulus measures will have a direct impact on the housing market next year. The government is initially considering introducing incentives to the low and middle income groups to stimulate the housing market. If the government can introduce a series of strong policies, it will help improve the market atmosphere.

For developers, there is still a need to be cautious in moving forward with new projects. The market faces three important challenges. The first is the problem of supply-side oversupply in and around Bangkok, with the cumulative number of properties for sale remaining at 200,000 for the sixth consecutive year, and the existing inventory of 220,000 still taking three years to be fully absorbed without opening up for new housing. The active trading of second-hand homes is also one of the reasons for the low sales of new homes.

Data show that second-hand home transaction closings increased to 50 per cent in the first half of 2023, up from 40 per cent before the epidemic. Secondly, developers' operating costs have risen and these are expected to put additional pressure on developers' finances, in addition to the costs of building materials, land, labour and marketing, which will rise, as well as $59 billion worth of debt that will soon come due.

Next year, real estate firms have a total of 116 billion baht worth of maturing bonds to repay. Finally, the total population tends to decrease. As Thailand has entered an aging society, the household population in and around the capital city of Bangkok has been declining for three consecutive years, with Bangkok declining at an annual rate of 0.2 per cent, while the surrounding area has increased by 0.6 per cent year-on-year. Over the past five years, the household population in Bangkok and surrounding provinces has declined by 7 per cent annually.

In addition to the above challenges, the market for properties with a price tag of 10 million baht also needs more attention as the percentage of properties for sale in this segment is climbing. Although there is an oversupply problem after developers flocked to the market, customers in this purchasing power range are still limited due to the fact that they are still very limited.