The impact of COVID-19 on the real estate business has been undeniably severe. Recently, major property developers in the market have rushed to sell completed homes at discounts of up to 50-70%, offering free promotions and numerous bonuses to boost sales and clear stock during this period.

It is clear that the second-hand housing sector is the group most directly affected. Previously, second-hand homes were priced 20-30% lower than new homes, but now, due to new home promotions, some projects have seen prices drop to levels comparable to second-hand homes, making it difficult for the second-hand housing market to compete.

 

       However, second-hand homes still have their advantages, particularly in terms of location and the condition of the properties being sold, which are often still in good shape. This includes second-hand condossecond-hand townhomes  second-hand duplexes and second-hand single-family homes because some properties may belong to investors or individuals with multiple properties who need to sell quickly during this time. This has led to prices dropping by more than 50% compared to new projects in the same location. Importantly, buyers can still negotiate prices further. This period presents a great opportunity for those looking to purchase quality second-hand homes at affordable prices, especially in the upper market segment.

       Mr. Woradet Siwatechanont, CEO of ERA Holding (Thailand) Co., Ltd. believes that high-end homes are still selling well among businesspeople or affluent individuals, as evidenced by high-value properties worth 60-100 million baht being brought to the company for sale. However, due to the current situation, buyers can negotiate prices down by more than 20% from the listed price.

       Every day, a significant number of properties are circulating in the second-hand housing market. Some buyers transfer ownership and can move in within just a few days, or they may change their minds before even moving in and decide to sell, which still counts as second-hand housing. Even if the condition is comparable to new homes, the price must still be slightly adjusted downwards. The reasons for the influx of millions of homes into the market include: 1. Buying a new home closer to work 2. Moving back to the provinces 3. Relocating abroad 4. Dissatisfaction with the purchased home 5. Issues with neighbors 6. The actual condition of the home not matching the model home 7. Poor location 8. Changes in the environment 9. Family expansion 10. Financial difficulties or job loss.

       Mr. Wasan Khongjan, Managing Director of M Proker Co., Ltd. and Modern Property Consultant Co., Ltd. states that although this market is currently declining, wealthy foreign investors who enjoy accumulating real estate are still reaching out. He acknowledges that competition between new and second-hand homes is fierce due to aggressive price reductions to clear ready-to-move-in stock. However, he believes that the second-hand market can still thrive because buyers will choose based on the potential of the location, convenience of transportation, and the current prices of second-hand homes, which have already seen reductions of over 50%. For example, in the Lat Phrao area, new homes are selling for 15 million baht, while second-hand homes in nearby locations can be sold for no more than 10 million baht.

       Furthermore, foreign customers, especially from China, remain an interesting purchasing group due to their demand for second homes for living or long-term vacationing in Thailand, which is expected to rebound after the COVID-19 situation improves. They tend to look for properties priced from 5 to 10 million baht and above, with larger rooms and good locations.

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