Consumer market is always changing

High mortgage rejection rates contribute to the growth of residential rentals in Greater Bangkok, particularly among young people. (Photo: Wisuttipong Rodpai)

Rapid shifts are occurring in the Thai property, retail, technology and mobility sectors, as sustainability shapes malls, demand in the residential housing rental market in Greater Bangkok rises, live commerce and artificial intelligence transform consumption, and the electric vehicle market faces uncertainty following expiring incentives.

Younger adults drive Bangkok rental market

Kanana Katharangsiporn

The residential rental market in Greater Bangkok is gaining momentum, driven by shifting preferences among young adults and by developers adapting to stricter mortgage rules by offering more rental options to prospective buyers.

Younger adults are reshaping housing demand by emphasising flexibility and financial resilience, rather than long-term home ownership.

This shift is increasingly underpinning the expansion of the rental market in the capital and its surrounding areas.

Many younger Thais delay buying homes as they value mobility and work-life balance. With careers increasingly flexible, freelance or technology-driven, renting allows them to relocate easily, live closer to workplaces or mass transit, and avoid long-term financial commitments.

High housing prices relative to income remain a key deterrent. According to a survey conducted in October-November 2025 by property portal Ddproperty.com, nearly one in five renters cited unaffordable home prices as the main reason for renting, preferring to preserve savings rather than commit to costly property purchases.

Financial readiness is another constraint. About one-third of respondents had sufficient savings to buy a home, while 38% were halfway towards their savings goals.

More than a quarter had not begun saving at all, reflecting caution amid economic uncertainty.

Household debt further limits purchasing power. Data from TMBThanachart Bank's financial health check showed 8 in 10 salaried workers carry debt, largely from personal loans and credit cards. High debt service ratios reduce mortgage eligibility, particularly for first-time buyers.

These challenges translate directly into mortgage outcomes. The Housing Business Association reported rejection rates exceeding 40% in the third quarter of 2025, highlighting persistent difficulties in accessing housing loans despite underlying demand among younger households.

Faced with these barriers, many young consumers embrace the "Generation Rent" mindset. Ddproperty found 23% of renters chose leasing because homes were too expensive, while 20% lacked sufficient savings and 12% saw no urgency to buy.