Bangkok Condo Market Remains Buyer-Driven Despite Luxury Strength
Bangkok's condominium market remains buyer-driven in early 2025, with luxury segments thriving while mid-range properties struggle amid cautious developer investment and limited new supply of just 16,000 units projected for the year.
Savills Thailand assesses Bangkok's condominium market in the first half of 2025 as still in market rebalancing, with developers exercising caution and prioritizing inventory clearance over new launches, resulting in limited new supply. Only 16,000 units are projected for the full year, below pre-COVID averages.
According to Prapaporn Boonkitcharkul, deputy managing director of Savills Thailand, the overall Bangkok condo market continues its rebalancing period. Developers remain cautious about investment, resulting in limited new supply concentrated among major developers, while mid-sized and smaller operators focus on liquidity management and clearing stock rather than launching new projects.
Demand shows clear segmentation across market tiers. Luxury condominiums in central business districts maintain strong sales and absorption rates from affluent buyers, long-term investors, and foreign purchasers. Mid-range and lower-segment markets face pressure from sluggish purchasing power recovery and strict lending standards, prompting developers to compete on price and promotions to accelerate inventory clearance.
Savills expects the market to gradually recover in the second half of 2025, with growth concentrated in well-located projects offering differentiated products and competitively priced units, reflecting that successful market-aligned development will be critical amid continued competition.
In the second quarter, only five new projects launched with 2,260 units valued at 15.6 billion baht from just two registered developers—Sansiri and AP (Thailand)—with no new launches from mid-sized or smaller developers, indicating investment caution and liquidity focus.
For the first half overall, 15 new projects comprising 12,248 units launched, up 72.52% year-over-year, but driven by only a few large projects and not yet reflecting overall market recovery.
Luxury and super-luxury segments remain strongest, particularly penthouses and large units in Sukhumvit central, Thonglor, Ekkamai, Chidlom, and Lumphini, attracting owner-occupants, investors, and foreign buyers due to limited land supply and maintained pricing.
Conversely, mid-range and lower segments suffer from weak domestic purchasing power, high loan rejection rates, and fierce price competition, with developers accelerating clearance through price cuts and promotions, some pricing near levels from a decade ago to drive purchase decisions.
Savills projects 16,000 new condo units launching throughout 2025, down 6% from 2024 and below pre-COVID averages, reflecting developers' cautious investment approach. Major developers are diversifying into tourism and economic cities like Phuket and Pattaya, driven by tourism recovery and foreign purchasing power.
