Thais shift to renting as property market booms in tourist cities

This year has presented significant challenges to Thailand’s real estate market, marked by slow economic growth, weakened purchasing power and rising household debt.

Adding to the strain, banks have tightened credit approvals and interest rates remain high.

Phuwanai Phattaraphokin, CEO of LivingInsider Co, a real-estate platform, said at the NEXT 7.0 Conference on Thursday that data shows consumer searches for rental properties surged to 57 million views this year, a 13% increase from 2023. In contrast, searches for properties to buy dropped to 47 million views, down 20% year-on-year.

“Given the current economic climate and consumer mindset, renting is viewed as a more practical option than buying. Despite the downturn, properties in prime locations continue to perform well in the rental market, with some areas experiencing stock shortages. For some, real estate remains a solid investment opportunity,” Phuwanai said.

Urban condos dominate

In 2024, urban property seekers were found to overwhelmingly prefer condominiums (74%) over houses (26%). Among condominiums, one-bedroom units are the most popular (63%), followed by two-bedroom units (24%) and studio units (10%). 

“Consumers prioritize one-bedroom units that offer private living spaces over studio setups. However, budget constraints may lead some to opt for studios,” he added.

For low-rise housing, single-detached homes are the most popular (62%), followed by townhomes (38%), with rental interest at 63% compared to 37% for buying.

Sales and rental trends

Average sales prices:

Urban houses: 12.3 million baht

Suburban houses: 4.6 million baht

Urban condos: 6.8 million baht

Suburban condos: 3.2 million baht

Average monthly rents:

Urban houses: 45,000 baht

Suburban houses: 23,000 baht

Urban condos: 14,000 baht

Suburban condos: 7,400 baht

“The price of urban houses has gone beyond 10 million baht due to high land costs, while urban condos now start at 5 million baht. Construction costs no longer justify smaller units,” Phuwanai noted.

Emerging hotspots

In Bangkok, the top five condo hotspots are Asoke, Thonglor, and Ekkamai (15%); Rama IX (10%); Onnut-Punnawithi (9%); Ratchada-Huai Khwang (5%); and Ha Yaek Ladprao (4%).

For houses, notable areas include Pattanakarn, Srinakarin, Krungthep Kreetha (9%); Ramintra-Watcharaphon, Sai Mai-Hathairat (8%); Bangna KM 7, Ramkhamhaeng 2 and Mega Bangna (7%); Pathum Thani-Rangsit-Lam Luk Ka (6%); and Nonthaburi-Bang Yai-Bang Bua Thong (5%).

“Bangna is emerging as a prime location for both rental and resale, thanks to improved connectivity, retail amenities and growing demand,” he said.

Provincial hotspots

Outside Bangkok, Chonburi (Pattaya and Sriracha) leads (38%), followed by Chiang Mai (17%), Hua Hin (11%), Phuket (6%), and Khon Kaen (5%).

“Phuket, especially Patong, has seen a surge in interest over the past year or two. Land prices there now rival areas like Thonglor in Bangkok – a stark contrast to its unranked status just five years ago,” Phuwanai concluded.