The housing purchase confidence index (HPCI) in Greater Bangkok improved slightly in the second quarter from the first quarter, thanks to property measures, but remained low because of persistent negative factors.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the index in the second quarter was 39.6, up from 39.2 in the first quarter.
"The index saw a modest rise following the announcement of property measures in early April," he said.
"The government introduced these measures to stimulate the economy through the property sector."
The measures benefiting homebuyers include a reduction in transfer and mortgage fees to 0.01% each from 2% and 1%, respectively, for housing units valued 7 million baht or lower.
The index was helped by mortgage schemes totalling 40 billion baht offering lower interest rates for units priced 3 million baht or less, said Mr Vichai.
"Despite these measures, the index remains below the median value of 50, indicating low confidence among homebuyers, attributed to several ongoing negative factors," he said.
These factors include the lifting of lending curbs that affected potential buyers in the middle and upper-end segments seeking to purchase a second home.
High household debt exceeding 90% of GDP also led to a higher rate of mortgage rejections among lower and middle-income earners.
A high policy interest rate of 2.5% has dampened home purchasing power since last year, while the slow economic recovery affects overall sentiment, said Mr Vichai.
"These negative factors led to a slower increase in income for potential homebuyers compared with the rising cost of living," he said.
"This reduced purchasing power and instalment payment capacity, directly affecting residential sales."
An REIC survey found more than half (53.3%) of respondents planning to buy a home were female. Nearly half (49.4%) were aged between 25 and 34.
Some 34.8% had a monthly income of 15,001-30,000 baht. Among them, 32.1% intended to buy a property for personal use, 17.8% for investment and 15% as an asset.
Those looking to purchase new units comprised 37.2%, down from 38.9% in the first quarter.
Another insight is respondents aged 45 and older showed the highest interest in buying condos.
This trend was likely driven by their desire to speculate or invest, as they typically already own a home, according to the centre.