The Thai residential property market faces a mixed picture in 2025. Despite the overall price increase driven by rising construction and land costs, domestic demand remains subdued due to lower purchasing power and credit constraints. In this environment, foreign demand plays a key role in maintaining market activity. Government stimulus measures aimed at supporting domestic demand have not yet had a significant impact.
A market analysis based on Q4 2024 data shows that residential property price growth in the Bangkok metropolitan area is slightly lagging behind the national average, with the condominium segment showing a noticeable slowdown in price growth compared to previous quarters. Overall, single-family and townhouse price growth remains stable nationwide, although it varies by region. The data points to continued, but possibly slowing, growth dynamics for the Thai residential property market in 2025.
According to the February 2025 Global Property Guide analysis of the Thai property market, Bangkok and Phuket remain the most expensive locations to buy apartments, with the average price of a two-bedroom apartment reaching US$303,209 and US$296,134, respectively. At the same time, Nonthaburi and Samut Prakan offer more affordable housing options. Industry experts predict a moderate increase in property prices in 2025, with developers prioritizing selling off existing housing stock rather than aggressively increasing prices. Atip Pichanon predicts a growth of 2-3%, attributing it to the rise in land prices. Surachet Kongcheep expects a more significant increase of 5-7%, but emphasizes that the prices of completed projects will not be significantly affected by the presence of excess supply.
A market analysis based on Q4 2024 data shows that residential property price growth in the Bangkok metropolitan area is slightly lagging behind the national average, with the condominium segment showing a noticeable slowdown in price growth compared to previous quarters. Overall, single-family and townhouse price growth remains stable nationwide, although it varies by region. The data points to continued, but possibly slowing, growth dynamics for the Thai residential property market in 2025.
According to the February 2025 Global Property Guide analysis of the Thai property market, Bangkok and Phuket remain the most expensive locations to buy apartments, with the average price of a two-bedroom apartment reaching US$303,209 and US$296,134, respectively. At the same time, Nonthaburi and Samut Prakan offer more affordable housing options. Industry experts predict a moderate increase in property prices in 2025, with developers prioritizing selling off existing housing stock rather than aggressively increasing prices. Atip Pichanon predicts a growth of 2-3%, attributing it to the rise in land prices. Surachet Kongcheep expects a more significant increase of 5-7%, but emphasizes that the prices of completed projects will not be significantly affected by the presence of excess supply.
Despite subdued demand for housing, there are early signs of a gradual recovery. According to REIC, the total number of registered property transfers fell by 7.4% in the first three quarters of 2024, amounting to 250,580 units. At the same time, there are mixed dynamics: demand for low-rise housing decreased, while demand for condominiums increased.
Despite the general decline in the property market that began in early 2024, there are signs of stabilization due to timely measures by the government. The reduction in transaction fees for properties worth up to 7 million baht, approved by the Ministry of Finance, had a tangible impact on the situation.
The reduction in fees for the transfer of property rights and mortgage registration to a minimum of 0.01% from the previous 2% and 1%, respectively, according to experts, slowed the rate of decline in property transfers in the second and third quarters. While the total number of transfers fell by 13.8% in the first quarter, the decline slowed to 4.5% in the third quarter, largely due to increased transfers in the lower-priced condominium segment. The total value of residential properties transferred also showed a similar trend, falling by 8.0% year-on-year in the first three quarters of 2024 to 705,388 million baht (US$21,212 million).
Despite the general decline in the property market that began in early 2024, there are signs of stabilization due to timely measures by the government. The reduction in transaction fees for properties worth up to 7 million baht, approved by the Ministry of Finance, had a tangible impact on the situation.
The reduction in fees for the transfer of property rights and mortgage registration to a minimum of 0.01% from the previous 2% and 1%, respectively, according to experts, slowed the rate of decline in property transfers in the second and third quarters. While the total number of transfers fell by 13.8% in the first quarter, the decline slowed to 4.5% in the third quarter, largely due to increased transfers in the lower-priced condominium segment. The total value of residential properties transferred also showed a similar trend, falling by 8.0% year-on-year in the first three quarters of 2024 to 705,388 million baht (US$21,212 million).
