The Condominium Association of Thailand is sounding the alarm: prices for some new apartments in Bangkok have fallen to ten-year levels. Developers, seeking to attract buyers with limited purchasing power, are being forced to halve their profit margins, cutting them from the traditional 30% to 15%. This pricing policy is expected to attract both investors seeking subsequent capital appreciation and those willing to wait to move in.
Association President Prasert Taedullayasathit notes that developers resumed launching new projects in the third quarter of this year after a six-month lull. For example, in the Rama IV area, apartments are being offered at 120,000 baht per square meter, significantly lower than prices in neighboring buildings (over 150,000 baht). In the Tha Phra area, new projects are starting at 60,000-70,000 baht per square meter. m, while the average market price exceeds 100,000 baht.
Meanwhile, the ready-to-move-in market offers end buyers an alternative. Many apartments ready for occupancy can be priced higher than new developments, but require no waiting period. This market situation is confirmed by data from consulting firm Knight Frank Thailand: in the second quarter, average asking prices for apartments in Bangkok remained stable. In the central business district, the price per square meter was 239,475 baht, unchanged from the previous quarter but down from 249,744 baht in Q2 2024. This price competition suggests that the market has not yet fully recovered.
Sukhumvit saw a slight increase, while prices in Sathorn Silom remained stagnant, reflecting sluggish demand in the luxury segment, which continued to await further positive developments. In areas surrounding the city, the average asking price fell to 126,897 baht per square meter, compared to 128,049 baht in the first quarter of 2025 and 127,421 baht in the second quarter of 2024. The decline was driven by reduced purchasing power and intense competition amid a large inventory of unsold units. Developers were forced to adjust prices to stimulate demand.
Association President Prasert Taedullayasathit notes that developers resumed launching new projects in the third quarter of this year after a six-month lull. For example, in the Rama IV area, apartments are being offered at 120,000 baht per square meter, significantly lower than prices in neighboring buildings (over 150,000 baht). In the Tha Phra area, new projects are starting at 60,000-70,000 baht per square meter. m, while the average market price exceeds 100,000 baht.
Meanwhile, the ready-to-move-in market offers end buyers an alternative. Many apartments ready for occupancy can be priced higher than new developments, but require no waiting period. This market situation is confirmed by data from consulting firm Knight Frank Thailand: in the second quarter, average asking prices for apartments in Bangkok remained stable. In the central business district, the price per square meter was 239,475 baht, unchanged from the previous quarter but down from 249,744 baht in Q2 2024. This price competition suggests that the market has not yet fully recovered.
Sukhumvit saw a slight increase, while prices in Sathorn Silom remained stagnant, reflecting sluggish demand in the luxury segment, which continued to await further positive developments. In areas surrounding the city, the average asking price fell to 126,897 baht per square meter, compared to 128,049 baht in the first quarter of 2025 and 127,421 baht in the second quarter of 2024. The decline was driven by reduced purchasing power and intense competition amid a large inventory of unsold units. Developers were forced to adjust prices to stimulate demand.
In Bangkok's suburbs, the average asking price fell to 72,193 baht per square meter, down from 72,776 baht in the previous quarter but up from 69,241 baht a year earlier. The downward trend continues as developers seek to attract buyers with genuine demand and expedite the sale of unsold units. "Stable or falling prices indicate that the market remains extremely sensitive to external pressures, as competition is focused on value rather than price growth," said Frank Han, partner and head of residential at Knight Frank Thailand.
Mr. Han noted that the condominium market continues to face challenges related to weak purchasing power and overall economic pressures. "Both developers and buyers are wary of the economy," he said. "The world is full of wars and negative news, so people are hesitant to commit." They are waiting for improved economic conditions and political stability, which are critical factors." He warned that if the government fails to make the right decisions in the real estate sector, economic growth could decline by as much as 25%, given the sector's significant contribution to GDP.
Mr. Han identified two key issues putting significant pressure on the Thai housing market: banks' conservative stance on mortgage lending, which directly limits purchasing power, and general economic uncertainty. These factors, he believes, will ensure that current sentiment remains similar to that seen in the first half of the year, which has already bottomed out.
Nevertheless, there is potential for a gradual recovery by the end of the year. This rebound could be spurred by the introduction of government support measures and more favorable mortgage interest rates, which in turn would help restore consumer confidence and encourage them to make purchases. At the same time, many developers already have ready-made projects and budgets, actively using advertising campaigns to test the market, waiting only for the right moment to launch their operations.
Mr. Han noted that the condominium market continues to face challenges related to weak purchasing power and overall economic pressures. "Both developers and buyers are wary of the economy," he said. "The world is full of wars and negative news, so people are hesitant to commit." They are waiting for improved economic conditions and political stability, which are critical factors." He warned that if the government fails to make the right decisions in the real estate sector, economic growth could decline by as much as 25%, given the sector's significant contribution to GDP.
Mr. Han identified two key issues putting significant pressure on the Thai housing market: banks' conservative stance on mortgage lending, which directly limits purchasing power, and general economic uncertainty. These factors, he believes, will ensure that current sentiment remains similar to that seen in the first half of the year, which has already bottomed out.
Nevertheless, there is potential for a gradual recovery by the end of the year. This rebound could be spurred by the introduction of government support measures and more favorable mortgage interest rates, which in turn would help restore consumer confidence and encourage them to make purchases. At the same time, many developers already have ready-made projects and budgets, actively using advertising campaigns to test the market, waiting only for the right moment to launch their operations.