Leading Thai property developers are rolling out ambitious strategies for 2025 as the real estate market faces continued headwinds, with experts forecasting flat growth compared to 2024.
The challenging environment has prompted major players to diversify their portfolios and adopt innovative approaches to capture existing demand.
According to analysis by Siam Commercial Bank’s Economic Intelligence Centre, the property market continues to face three major challenges: weak purchasing power, particularly among middle to lower-income segments; strict lending criteria and high interest rates; and elevated construction costs affecting housing prices, especially in Bangkok, its vicinity, and tourist destinations like Phuket.
Despite these challenges, developers see potential growth opportunities.
Traitecha Tangmatitham
Supalai PCL, one of Thailand's prominent developers, has announced plans to launch 36 new projects worth 46 billion baht, including their most ambitious condominium pipeline in 15 years.
"Our theme this year is 'Supalai Future Proof 2025'. Regardless of economic conditions, we remain confident in our strong investment approach," said Traitecha Tangmatitham, managing director of Supalai.
In contrast, Land & Houses has adopted a more cautious stance, reducing new project development by 64% and focusing on maintaining liquidity.
Naporn Sunthornchitcharoen
"This year, developers must look inward and prepare for considerable uncertainties," Naporn Sunthornchitcharoen, director at Land & Houses, said.
Sansiri, another major player, sees opportunity in the condominium sector, particularly near mass transit lines.
Poomipak Julmanichoti
"The condominium market should improve in 2025, given the limited new supply launched during the post-Covid period," said Poomipak Julmanichoti, chief of strategy at Sansiri. The company is particularly optimistic about projects near mass transit lines, capitalising on the government's fixed-rate train fare policy.
AP Thailand is leveraging its strong financial position to gain market advantage. With a net debt-to-equity ratio of just 0.74 and available credit facilities of 17 billion baht, the company is well-positioned for expansion.
"The prolonged economic downturn has created advantages for financially robust developers," explained Vittakarn Chandavimol, chief corporate strategy officer at AP Thailand.
Fraser Property Thailand (FPT) is diversifying its approach by targeting both domestic and international markets. The company plans to launch six new residential projects worth 9.8 billion baht while expanding its industrial estate portfolio.
Thanapol Sirithanachai
"While domestic purchasing power remains subdued, we're focusing on both maintaining our existing customer base and attracting new segments," said FPT CEO Thanapol Sirithanachai.
Market analysts suggest that recovery in 2025 will largely depend on government support measures, particularly those aimed at improving home loan accessibility for middle-income buyers.
Foreign demand, especially from Chinese investors, is expected to continue providing crucial market support, accounting for approximately 50% of foreign property transfers in Thailand.
The successful revival of Thailand's property sector, which contributes significantly to the country's GDP, will ultimately hinge on systematic resolution of household debt issues and implementation of effective government support measures.
As the market evolves, developers with strong financial positions and adaptive strategies appear best positioned to navigate the challenging landscape ahead.