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26 Sep 2024

Real Estate and Construction

Home loans in the banking system projected to post the lowest growth in 23 years during 2024 (Current Issue No.3521 Full Ed.)

คะแนนเฉลี่ย

Home loans in the banking system projected to post the lowest growth in 23 years during 2024  

• Home loans in the Thai financial institution system continue to slow down, in line with the overall weakness of the housing market. Looking specifically in the banking system, home loans grew only 0.8 percent YoY in 2Q24. As a result, the overall home loans may not grow more than 1.2 percent in 2024, marking the lowest growth rate in 23 years.

• The uneven recovery of the economy has affected household income and may cause the NPL ratio of housing loans in the banking system to rise above 3.90 percent of total loans in 2024, against the 3.71 percent reported for 2Q24.

• Besides the asset quality issue, it is expected that more new loans focusing on the middle-to-high income earners and the refinancing market will be extended during the rest of 2024. Additionally, further monitoring of authorities’ measures, aimed at sustainably addressing over-indebtedness and related issues, will be necessary, as they may affect the home loan outlook.

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Real Estate and Construction