8 key trends shaping Thai real estate after rollercoaster year

Eight highs and lows in Thailand’s rollercoaster real estate market last year present challenges in 2025. Developers are now adopting strategies to address these hot issues, seeking a year of stabilisation and recovery after the storm.

1. Bangkok’s condo market slumps
A notable phenomenon of 2024 was the decline in new condominium launches in Bangkok, Thailand’s economic hub. During the first half of the year, the condo market shrank by 43.72% YoY, with the launch of only 8,674 units worth a total 49.37 billion baht. The main reason for the slump was a high mortgage rejection rate of 70%, significantly reducing demand for condos in the capital.

2. Real estate sales plummet in Q3
Thailand’s real estate market experienced a severe downturn on the third quarter. Sales across all categories fell in both volume and value compared to the previous quarter and previous year. Condominium sales dropped by 60%, while townhouses and detached houses fell by over 26%. Overall, Q3 sales declined by more than 30% from the previous quarter and 45% year-on-year.

3. Phuket’s real estate surges amid sluggish market
While Bangkok’s real estate market contracted, Phuket experienced a remarkable boom. New condo and villa projects launched in significant numbers. According to Colliers, Phuket saw over 12,000 new condominium units in 2024, with a total investment of 63 billion baht. Villa launches doubled, with a total value of 36.3 billion baht. This marked the first time in 15 years that new villa projects outpaced condominium launches, particularly in the popular Bang Tao–Cherng Talay area, favoured by both Thais and foreigners.

4. New landmarks: One Bangkok and Dusit Central Park
The launch of two mega-projects in the heart of Bangkok, One Bangkok and Dusit Central Park, made waves in the industry. One Bangkok, with an investment of 120 billion baht, spans 108 rai of land leased from the Crown Property Bureau. It includes office buildings, five luxury hotels, and retail spaces. Meanwhile, Dusit Central Park, with a 46 billion baht investment, features a hotel, office building, luxury condominium, and Central shopping centre. The two projects have transformed the Rama IV area into Bangkok’s hottest new economic zone, with land prices surging to 3 million baht per square wah.

5. Thongma Vijitpongpun returns as Pruksa CEO
In a key development, Thongma Vijitpongpun was appointed acting CEO of Pruksa, replacing Uten Lohachitpitaks, effective December 17. Uten, previously a director at Frasers Property, initially joined as group CEO alongside Thongma before being promoted to group CEO and chairman in early 2023. This leadership change reflects Pruksa’s strategic adaptation amid significant challenges in the real estate sector, prompting its founder and pioneer to step in and take charge directly.

6. Luxury homes boom amid strong high-end demand
The luxury housing market in Thailand became a refuge for developers amid a fragile middle-to-lower income segment. Colliers reports notable growth in the “Ultimate Class” housing market over the past decade, with the launch of 394 new units valued at over 450 billion baht. Major developers like SC Asset, Land and Houses, and Sansiri have ventured into high-end projects priced at 100 million baht or more, with some units reaching 1.3 billion baht.
This market expansion targets affluent buyers, including wealthy Thais, business owners, politicians, celebrities, and foreign customers. Key hotspots include Bangkok’s Sukhumvit, Ari, Bang Na, Rama IX, and Phatthanakan.

7. Branded residences: A magnet for foreign buyers
An emerging trend in Thailand’s real estate sector is the rise of branded residences, leveraging global marques to attract foreign buyers. Projects like Ananda’s Porsche Design Tower Bangkok, priced at 1 million baht per square metre (starting at 525 million baht to 1.4 billion baht per unit), highlight this shift. This approach reflects the industry's adaptation to meet high-end market demands, competing globally by offering not just luxury but also the distinctive appeal of strong brand identities. These developments cater to affluent Thai and international buyers seeking exclusivity and sophistication.

8. The rise of Generation Rent
A significant change in the market is being driven by the younger generation, who increasingly prefer renting over buying. High living costs, limited savings, and soaring property prices, combined with burdens like student loans and credit card debt, make long-term homeownership less attractive. Rising land prices, higher mortgage interest rates, and the desire to avoid financial commitments contribute to the “Generation Rent” trend. This demographic values financial flexibility and lifestyle adaptability over property ownership.
These challenges and opportunities will play a pivotal role in shaping the real estate industry in 2025. Developers must navigate these shifts to sustain growth and stay competitive in an evolving market.