Despite the sluggish economy, demand for real estate remains strong in Thailand, with the market expected to grow by 5-10% this year after receiving a boost from the government's property stimulus measures.
Napong Panthong, head of Thailand marketing at All Property Media Co, said online property searches via the company's DDproperty.com website rose by 29% year-on-year to between 2.2 and 2.9 million visitors in the first eight months of this year.
Among all property seekers on DDproperty.com, 49% focused on detached houses, 29% on condominiums and 25% on townhouses, while the most-viewed price range was 1 to 2.99 million baht.
Active property listings on DDproperty.com rose by 21% year-on-year.
Condominiums were the most popular listing among sellers, making up 49%.
Mr Napong said last month's DDproperty Show: Living and Investment event organised by the website garnered striking interest from both first-time buyers and upgraders.
Enthusiasm was particularly strong for condos located along mass-transit routes including the future skytrain extension from Bearing station in Bangkok to Samut Prakan province.
More than 1,000 property seekers attended the event, which generated 3.8 billion baht in potential revenue for developers.
“Although Thailand’s economy is considered sluggish, the search volume from property seekers on DDproperty.com shows there remains constant demand for property,” Mr Napong said.
“The government’s recently announced measures to stimulate the property market could conceivably drive growth in the real estate business by 5-10%.”
Those stimulus measures cover reductions in housing transfer and mortgage fees, personal income tax deductions for those purchasing a property for less than 3 million baht and soft loans amounting to 10 billion baht offered by GH Bank.
The cabinet on Tuesday approved cuts in housing transfer and mortgage fees to 0.01% each for six months for homes priced at 3 million baht or less, down from 2% and 1%, respectively.
The cuts will take effect this month for both new and second-hand homes.
The cabinet also approved a proposal allowing first-time buyers who purchase a home worth 3 million baht or less by Dec 31, 2016 to deduct 20% of the value of the home from their annual personal income tax over a five-year period.
Thai Condominium Association president Prasert Taedullayasatit earlier said the tax incentives, if they took effect this month, would boost the overall housing market in the fourth quarter by 20-30%.
With the measures, full-year housing market value would reach an estimated 330 billion baht, up by 12.6% from last year.
Without them, market value would be 310 billion baht, an increase of only 7%, Mr Prasert said.