New infrastructure is expected to revive the economy and strengthen home purchasing power in Nakhon Ratchasima and Udon Thani, as transfer and mortgage fee cuts and lower interest rates have had a limited effect, according to local developers.

Nuttapong Prasansivamai, president of the Nakhon Ratchasima Real Estate Association, said new infrastructure projects, particularly major developments such as the high-speed railway and the motorway, will inevitably raise incomes in the province.

"Improved connectivity will stimulate the local economy in Nakhon Ratchasima as it can boost tourism and the meetings, incentives, conventions and exhibitions sector, including sporting events and conferences," he said.

The motorway, with 90% completion in terms of civil works, is expected to open on a trial basis next year, while phase one of the Bangkok–Nakhon Ratchasima high-speed railway is scheduled for completion in 2028.

By late 2026, the province is also set to complete its outer ring road. Four of the six phases are already open, and once fully finished, the road will form a complete loop, further enhancing mobility within the province.

"The residential market in Nakhon Ratchasima has remained flat without a clear recovery, despite the extension of transfer and mortgage fee cuts in April," said Mr Nuttapong.

However, the combination of this measure with eased loan-to-value limits and two interest rate cuts could signal an improvement in the market during the second half, said Mr Nuttapong.

The segments least affected by the slowdown are the middle to upper-end brackets, particularly units priced from 5 million baht, which have shown signs of recovery.

New projects in the 5 to 20-million-baht range launched by large developers have received strong market feedback, with solid bookings and satisfactory transfer activity, he said.

"Frequent government changes have created uncertainty, but this transition may bring some stability," Mr Nuttapong said.

"Real estate associations in each province plan to meet with the Bank of Thailand and other regulators to seek further relaxation measures that could help drive the sector forward."

Initiatives such as low-interest mortgage loans from the Government Housing Bank and easing credit bureau rules would support the overall property market.

"Lower interest rates would also be very helpful," he said. "We want to see continuous measures without disruptions, so developers can plan their strategies with greater confidence."

Jaturong Thanapura, president of the Udon Thani Real Estate Association, said domestic tourism stimulus and the government's "Khon La Khrueng" co-payment scheme could improve the overall economy.

"Normally, home demand in Udon Thani is not very strong, even when other provinces grow," he said.

"But in the past few years, the trend has clearly worsened as household incomes have declined. Tourism is the province's top income source, followed by agriculture. When income falls, so does buyer confidence, while foreign buyers remain limited."

MEASURES TOO LATE

Mr Jaturong said the cuts in transfers and mortgage fees were rolled out too late to support home demand in Udon Thani.

"By the time they came, purchasing power had already eroded. If they had been introduced earlier, the impact would have been more positive," he said.

Mr Jaturong said he expects the residential sector in the second half of the year to remain on a downward trend due to weak fundamentals.

With the province's household incomes declining, second-hand homes were outperforming new units, especially those priced below 3 million baht, he said.

According to the Real Estate Information Center, resale housing units accounted for 84.4% of homes sold in Udon Thani in the first half of 2025, up from 81.1% a year earlier.

By contrast, new-unit sales fell by 25%, from 245 units to 184, lowering their share of the market from 18.9% to 15.6%.

The largest group of resale transactions was homes priced under 1 million baht, totalling 494 units, as the supply of new homes remained limited due to higher land costs.

"Projects by smaller developers, who design schemes below the threshold requiring a land allocation permit, have also been selling better than permitted projects. Their lower operating costs allow them to offer more competitive prices."

Over the past few years, rising land costs have further discouraged new supply.

Developers who entered the market more recently face higher land expenses, forcing up home prices, which has made second-hand homes more attractive than new builds.