Of the ASEAN’s four largest markets, Thai households enjoy the highest discretionary spending as a proportion of total expenditure, as housing takes up a low share of household budgets at 8.3% in 2014, largely thanks to the local culture of multi-generational family homes.
• Companies planning on entering Thailand may want to consider
a regional strategy, with one-in-three dollars in the country spent
in Bangkok and households in the capital spending twice as much
on average as those in the north and north-east. Bangkok households also have a far greater power to spend on discretionary items thanks
to their higher disposable incomes and relatively low housing costs,
as Bangkok is one of the least expensive capitals in the world for housing. This, however, is set to change, because Thailand’s economic and financial hub is experiencing a sharp increase in housing demand due to rapid urbanisation and a growing number of expatriates.