Phuket, Thailand –
Thailand’s property market is enduring a difficult stretch in 2025 as economic uncertainty and dwindling purchasing power from both domestic and foreign buyers send shockwaves across major hotspots like Bangkok and Phuket. Real estate consultancy Knight Frank (Thailand) paints a bleak picture, labeling the year as “exhausting and genuinely painful” for the sector.
Market activity has slowed sharply due to cautious consumer behavior, tighter bank lending conditions, and ongoing political turbulence. Although interest in purchasing property remains, prospective buyers are holding off, fearing long-term financial commitments in such an unpredictable climate.
Developers—large and small—are pivoting strategies. New project launches have been significantly scaled back as firms prioritize clearing existing inventory and preserving cash flow. For companies struggling with liquidity, forming joint ventures or offloading projects below market value—often at discounts of 30–35%—has become a survival tactic.
Bangkok, once the epicenter of Thailand’s real estate boom, has seen purchasing power drop by over 50%, particularly among local buyers. Interest from foreign buyers has also collapsed. Chinese investors, who previously made up 35–40% of condominium sales, now account for only 10–15%. Phuket, too, has entered a low season slump, with international demand falling by more than half. Russian and Chinese buyers are still present, but volumes are nowhere near their peak from previous years.
As developers adopt a wait-and-see approach, landowners are releasing plots to meet immediate cash needs. However, land transactions are relatively stagnant, with limited movement in larger plots and modest price negotiations, usually no more than a 3–5% drop. Only sellers under pressure to close deals swiftly are offering deeper discounts.
Initially forecast to recover by 2026, analysts now expect the real estate market to begin rebounding in 2027. For now, the sector remains cautious—hedging bets and awaiting internal and external triggers, such as improved tourism figures or favorable fiscal policies, to ignite renewed growth.
Thailand’s real estate market is recalibrating itself amid tough times. For investors with strong liquidity, opportunities abound. For others, patience remains key as the landscape slowly reshapes itself for a future upturn.
