Challenges in Thailand's Real Estate Market

The Thai real estate market has faced considerable challenges this year, including slow economic growth, weakened purchasing power, and rising household debt. Banks have also tightened credit approvals, and interest rates remain high.

Rental vs. Purchase Trends

According to Phuwanai Phattaraphokin, CEO of LivingInsider Co, a real-estate platform, data shows a significant shift towards renting. Consumer searches for rental properties surged to 57 million views this year, a 13% increase from 2023. In contrast, searches for properties to buy dropped to 47 million views, down 20% year-on-year.

Urban Condos Dominate Preferences

In 2024, urban property seekers overwhelmingly preferred condominiums (74%) over houses (26%). Among condominiums, one-bedroom units are the most popular (63%), followed by two-bedroom units (24%) and studio units (10%).

Sales and Rental Trends

Average sales prices:

Urban houses: 12.3 million baht

Suburban houses: 4.6 million baht

Urban condos: 6.8 million baht

Suburban condos: 3.2 million baht

Average monthly rents:

Urban houses: 45,000 baht

Suburban houses: 23,000 baht

Urban condos: 14,000 baht

Suburban condos: 7,400 baht

Emerging Hotspots

In Bangkok, the top condo hotspots include Asoke, Thonglor, and Ekkamai (15%), Rama IX (10%), Onnut-Punnawithi (9%), Ratchada-Huai Khwang (5%), and Ha Yaek Ladprao (4%). For houses, notable areas include Pattanakarn, Srinakarin, Krungthep Kreetha (9%), Ramintra-Watcharaphon, Sai Mai-Hathairat (8%), Bangna KM 7, Ramkhamhaeng 2 and Mega Bangna (7%), Pathum Thani-Rangsit-Lam Luk Ka (6%), and Nonthaburi-Bang Yai-Bang Bua Thong (5%).

Provincial Hotspots

Outside Bangkok, Chonburi (Pattaya and Sriracha) leads (38%), followed by Chiang Mai (17%), Hua Hin (11%), Phuket (6%), and Khon Kaen (5%). Phuket, especially Patong, has seen a surge in interest, with land prices rivaling areas like Thonglor in Bangkok.