The reduction in transfer and mortgage fees for units priced 7 million baht or less, which expired last year, lifted home demand in Bangkok within this price range, according to a recent survey.

Siddhipen Siddharthapong, acting assistant director-general of the Real Estate Information Center (REIC), said the measure was quite effective in stimulating housing demand.

"Homebuyer sentiment in the fourth quarter last year was relatively weak, with new condo sales in Bangkok dropping by 25% and new low-rise sales by 31%, resulting in an overall decline of 27%," she said.

"However, as the measure was set to expire at the end of the year, purchasers of residential units priced 7 million baht or less rushed to complete transfers before the deadline."

REIC surveys residential transfers in Greater Bangkok each quarter, including price brackets such as 5.01-7.5 million baht.

The price brackets that benefited from the measure were units priced 7 million baht or cheaper, noted the centre.

The year-on-year increase in residential transfers in Greater Bangkok during the fourth quarter of 2024 for units priced at 7.5 million baht or less varied by location, according to REIC.

Nakhon Pathom saw the highest growth, attributed to its relatively low transfer numbers in the same period last year.

Bangkok ranked second, with a larger share of both unit numbers and value going to second-hand properties, indicating that buyers shifted towards pre-owned units in the same locations, which may better fit their purchasing power than new ones.

While the number of new unit transfers in Bangkok declined, the value increased, indicating weaker purchasing power in the lower-priced segment and a greater share of transfers in the higher-priced market.

In Greater Bangkok, only Nonthaburi saw a decline in both the total number and value of transfers, with the drop only occurring in new units as homebuyers shifted to second-hand properties.

Both the number and value of second-hand home transfers in Nonthaburi saw an increase, but it was not enough to offset the overall decline. The total number and value of transfers decreased, primarily due to a much steeper drop in new unit transactions.

In Samut Prakan, the measure helped boost demand. The province saw a slight drop in the value of new unit transfers, with a decrease of only 0.3%, while the number of transfers rose by 6.3%, as the majority were in lower-priced units.

"Bang Phli-Bang Bo and Phra Samut Chedi were the two locations with good sales and high absorption rates," Ms Siddhipen added.