Thailand Real Estate Slows as Developers Shift Strategy

Cushman & Wakefield Thailand reveals that Thailand's real estate market in the second half of 2025 is marked by cautious developer strategies, with companies slowing new project launches while accelerating inventory clearance to maintain cash flow. The firm notes that developers are shifting away from low-rise budget condominiums toward mid-to-high-end projects along BTS lines and high-potential areas, driving average condo launch prices to their highest levels since the COVID-19 pandemic began, despite overall new project volumes remaining below pre-pandemic levels.

Surachet Kongchip, head of research and advisory at Cushman & Wakefield Thailand, explains that the broader economic recovery remains incomplete, consumer purchasing power is fragile, and financial institutions maintain strict lending policies. Bangkok's Q2 saw only approximately 2,300 new condominium units launched, considered low, though the second half is expected to see more staggered releases if developers proceed as planned.

Warat Sirisaksanukhul, senior manager of capital markets and investment, notes that Bangkok's land market has transitioned from continuous price appreciation into a balanced state with some softening in certain locations, as the condominium market—previously a major land price driver—has slowed since the COVID period. Land developers now show increased caution in acquisitions while landowners face no urgency to sell, creating a clear "buyer's market." Sirisaksanukhul recommends landowners without immediate sale needs to consider 10-30 year leases for steady income and tax benefits, particularly for hotel and data center developments, which represent emerging market demand.

Data centers represent a particularly strong opportunity, with Thailand advancing toward "developed market" status. Combined operational, under-construction, and approved projects will support more than 1,500 megawatts of capacity, reflecting long-term growth in digital industries and foreign investment.

Pongphan Ployachart, head of logistics and industrial operations, reports that logistics and industrial parks remain the strongest-growing segment in the second half, with the Eastern Economic Corridor continuing as the primary investment hub. However, Chachoengsao Province faces water and electricity constraints, prompting data center investors to explore alternatives like Samut Prakan, which offers superior infrastructure despite higher land costs. Warehouse and factory rental rates continue climbing steadily since 2020, reflecting sustained logistics sector demand.