Bangkok Housing Market Shrinks Over 50% in First Half
Bangkok's housing market contracted sharply in the first half of 2026, with new projects falling over 50% due to stricter bank lending and rising construction costs, though buyer demand increased ahead of a June deadline for reduced transfe
Stricter bank lending and rising construction costs have slowed new housing projects while developers rush to clear existing inventory, causing the Bangkok and metropolitan housing market to contract sharply in the first half of the year. New projects declined 50.7% and unit numbers fell 37.9% year-on-year.
The Real Estate Information Center (REIC) of the Government Housing Bank released an analysis of the Bangkok and metropolitan housing market for the second quarter and first half of 2026. In the second quarter, land subdivision permits fell 45.0% in project count and 32.2% in unit count compared to the same period last year. Construction permits for residences dropped 47.3%, while completed and registered units fell 4.2%. New units launched increased 0.8%, but overall project value declined 25.4%.
On the demand side, residential property transfers rose 29.6% in unit count and 15.9% in transaction value year-on-year.
For the first half of 2026, land subdivision permits fell 50.7% in project count and 37.9% in unit count. Construction permits decreased 1.8%, while completed and registered units dropped 8.7%. New unit launches and project value both fell—down 20.9% and 18.0% respectively.
On the demand side, residential transfers increased 20.8% in unit count and 7.0% in transaction value year-on-year. This uptick was driven by accelerated property transfers ahead of the transfer fee and mortgage registration fee reduction measure expiring on June 30, 2026, before cabinet approval for extension to June 30, 2027.
In the second quarter, land subdivision permits for residential development in Bangkok and the metropolitan area totaled 22 projects comprising 3,521 units, down 45.0% and 32.2% respectively compared to the same quarter last year, which had 45 projects and 5,191 units.
By property type, townhouses dominated with 1,947 units (55.3%), followed by single-family houses with 977 units (27.7%) and semi-detached houses with 442 units (12.6%).
By province, Bangkok led with 1,604 units (45.6%), followed by Samut Prakan with 1,015 units (28.8%). Pathum Thani and Samut Prakan saw declines of 93.9% and 46.6% respectively, while Samut Sakhon and Bangkok increased 319.2% and respectively in permits.
