Thailand's condo market plummets to 16-year low
BANGKOK: Thailand's condominium market has hit a staggering 16-year low, with new launches in Bangkok plummeting to just 373 units in the second quarter of financila year 2025 (2Q25).
This dramatic 94.2% contraction from the previous year marks the lowest level since 2009, when the market was only just beginning to recover from the subprime crisis, and is even worse than the slump experienced during the peak of the Covid-19 pandemic.
According to Colliers Thailand's Research and Communication Department, the dire figures have forced property developers and analysts to urgently re-evaluate their strategies.
'This is not merely a seasonal slowdown but a clear signal reflecting buyer hesitation and cautious decision-making from developers,' commented Pattarachai Thaweewong, director of research at Colliers International Thailand.
He noted that despite a modest recovery in 2022 to 2023, the market has failed to return to its pre-crisis strength.
The extent of the current downturn is particularly striking when compared to the typical 2Q25 average of 8,000 to 12,000 new condo launches over the past decade.
The sharp contraction in 2025 is attributed to a confluence of economic pressures:
>Elevated interest rates are significantly curbing the purchasing power of genuine buyers.
>Rising development costs, driven by increases in construction materials and land prices, are squeezing developer margins.
>Persistent economic uncertainty and a lack of clear government policy direction are further eroding confidence.
Unsurprisingly, many developers have opted to 'delay' new project launches, instead focusing on managing existing inventory and shoring up cash flow.
'Today's silence may become tomorrow's momentum if the timing and conditions are right,' Pattarachai suggested. — The Nation/ANN
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