DDproperty, Thailand's number one real estate marketplace, has revealed the results of the Consumer Sentiment Study H2 2020 across various ASEAN countries. The study indicates that the real estate market is still active but progressing slowly. Most consumers looking for homes for personal use have not abandoned their purchasing plans, but they are exercising more caution in their buying decisions due to the high volatility of the market caused by the COVID-19 pandemic. Smart homes that meet lifestyle needs have become a key consideration, while consumers in ASEAN also see opportunities for investment to secure their futures. However, price uncertainty continues to delay home purchases.

Ms. Kamolphat Saengkit, Country Manager for DDproperty in Thailand, stated, "Even though the business and social sectors in many countries are beginning to return to normal, we must remember that we are still under an unpredictable test. We may see another wave of disruptions if there is a new outbreak, and the economy will still need time to recover after the end of the banks' debt moratorium measures. This will lead to a real test, as the continuously rising unemployment figures will impact the fragile financial status of populations in each country. Therefore, maintaining continuity in recovery and stability for businesses is crucial for operators in all industries to consider. Even when facing liquidity issues, they must be confident that they can sustain their businesses with careful strategies."

Although the real estate market across the ASEAN region remains volatile, consumers still express a desire to purchase housing. The latest Consumer Sentiment Study from each ASEAN country shows positive signs for the real estate market, indicating a gradual growth trend. Most consumers looking for homes for personal use have not abandoned their purchasing plans but are being more cautious in their decisions due to the market's high volatility from the COVID-19 outbreak.

  • In one of the most active real estate markets in the region, a survey found that more than half (55%) of Singaporeans believe that price uncertainty affects their home-buying decisions, with consumers hoping to see lower home prices. Meanwhile, sellers are delaying property sales to wait for better returns later. The survey also revealed that 42% of respondents are particularly concerned about prices, and 82% are interested in homes/condos with fewer amenities if they come at a good price. Nevertheless, 40% of consumers plan to buy homes for personal use within the next year, especially among current renters (60%) and those still living with their parents (76%).
  • In Malaysia, 52% of respondents intend to buy for personal use in the second half of the year and post-COVID-19, while 42% plan to buy for investment. Notably, after the lockdown extension, working-age consumers, including millennials (aged 22-29, who made up most respondents) and current renters, are increasingly interested in buying homes for greater privacy. The survey found that 51% of renters and 44% of those living with family are still moving forward with home purchases, viewing the COVID-19 outbreak as no obstacle. Additionally, the survey highlighted that Malaysians face challenges not only from price volatility and delays in home purchases but also from the need to visit show homes, as they prefer to see actual projects rather than just online views.
  • In Indonesia, about 60% have decided to temporarily postpone real estate transactions to save money during this period, but they plan to return to buying real estate in the last two quarters of this year and into next year. However, while more than three-quarters of respondents consider their repayment ability carefully, income remains a significant barrier to purchasing property, with 51% lacking sufficient down payment and 46% concerned about uncertain income, which hinders loan applications.
  • Meanwhile, Thai consumers are 75% postponing real estate transactions, and 79% view property prices as a significant barrier to home purchases. However, 63% of consumers are interested in considering homes through auctions, as buyers who are ready see that these second-hand properties often exist in locations where new projects are difficult to launch or, if they do, are priced very high due to current land costs. This makes these projects more appealing in terms of location and affordability, and they are expected to grow even more in the future.

It is evident that most consumers are still considering purchasing real estate, especially those living with their parents, who are likely to buy their own homes in the latter half of 2020 and into 2021.

The survey also found that price information, location, and safety in the area are the most sought-after factors by consumers in ASEAN, with most searching online through project websites and real estate trading platforms to explore various housing projects. Some groups prefer using agents to save time on various processes, and some agents may offer special deals.

  • Most Indonesians intend to buy for investment, considering price, location, property type, safety of the area, and future development plans and infrastructure of the location. They also want to know about legal documents and procedures, as well as reviews of agents/developers when deciding to buy or rent, more than Thais do.
  • Thais prioritize price/unit first, followed by living space size, structure design, taxes, and government measures to assist, especially among younger generations who value housing design and seek rental returns/profit in the future.

Additionally, interesting observations emerged regarding the perspectives and factors consumers consider when wanting to buy a home after facing the COVID-19 outbreak:

  • Malaysians prioritize ventilation and natural light first, followed by internet accessibility, looking for homes that can serve as both offices and fitness spaces, and lower project density, especially among retirees who want to avoid crowded areas.
  • Singaporeans place special importance on locations near restaurants and shopping malls, followed by ventilation and natural light, with a growing demand for usable space and interest in smart home systems that address energy efficiency, especially if they have to live at home as experienced in recent situations.

"If we look at the overall real estate market in the region over the past 2-3 years, we can see that property values have been volatile, especially after the COVID-19 outbreak, which has increased market volatility. However, based on our survey results, the real estate sector in this region shows signs of a potential recovery driven by consumer demand that still exists, along with major operators starting to release new products or previously shelved projects back into the market, alongside efforts to accelerate the sale of older projects with attractive promotions to stimulate the decision-making of ready buyers. Additionally, many financial institutions are adjusting their home loan products and interest rates, further enhancing the prospects for market recovery," Ms. Kamolphat added.

In addition to various promotions from operators, DDproperty aims to energize the real estate market through the DDproperty EasyOwn Surprise Day campaign, which has gathered over 20 housing and condo projects from various popular locations in Bangkok and other provinces, suitable for both personal use and investment, with discounts of up to 2.75 million baht. Each participating project offers special deals, including discounts and additional gifts. Furthermore, those who reserve a unit/house from this campaign will receive a 500 baht Cenpay gift voucher (Central Group) delivered directly to their home for free.

Interested parties must register to receive special privileges before the event by registering at http://easyown.ddproperty.com/register.html
and follow the Surprise Deals on Fridays, August 7, 21, and September 4, 18, 2020, from 10:00 AM to 10:00 PM.