Category: The Bangkok Post

Despite the sluggish economy, the average selling price per square metre of new condo units in Greater Bangkok during the first half of 2026 neared the level recorded in 2019, the second-highest on record after the 2018 peak.

Surachet Kongcheep, head of research at property consultancy Cushman and Wakefield Thailand, said residential developers typically shift towards lower-priced housing during economic downturns to match weaker purchasing power.

“This downturn is different from previous cycles because middle- to lower-income homebuyers are struggling to obtain mortgage approval,” he said. “As a result, developers are avoiding new condo launches in these segments.”

The average selling price of newly launched condo units reached 120,364 baht per square metre in the first half of 2026, up 9.4% from 110,000 baht at the end of 2025.

Average launch prices have increased annually since 2022, rising from 84,500 baht per sq m in 2021, the lowest level in several years, to 87,625 baht in 2022, 95,500 baht in 2023, and 100,000 baht in 2024.

The market peaked at 126,373 baht per sq m in 2018, when Greater Bangkok’s condo market boomed, driven largely by Chinese buyers. Average prices then eased to 120,633 baht in 2019 before falling to 92,920 baht in 2020 as the pandemic hit the market.

“Affordable condo launches will become increasingly rare,” Mr Surachet said. “Land prices continue to rise, construction costs remain elevated and demand from middle- to lower-income buyers is constrained by stricter mortgage approval.”

According to Cushman and Wakefield Thailand, the average selling price of newly launched condo units jumped to 150,420 baht per sq m in the second quarter of 2026 from 90,308 baht in the first quarter.

The increase reflected a shift in developers’ launch strategy, with around 90% of new launches concentrated along the skytrain’s Sukhumvit Line outside the central business district, targeting higher-priced segments, while the remainder were launched in suburban Bangkok.

Meanwhile, first-quarter launch prices were dragged lower by Baan Chao Thai, a 4,150-unit condo project in the Srinakarin area developed by BTS Group Holdings Plc. With prices starting at 63,000 baht per sq m, the project significantly lowered the first quarter’s average selling price.

“Despite the slowdown in the condo market, developers continue to target buyers with stronger purchasing power rather than the lower-priced segment, where mortgage approvals have become increasingly difficult,” said Mr Surachet.

He said that most new projects are being launched near mass transit stations, particularly within walking distance, as the expansion of the rail network has lifted land prices in surrounding areas, driving up condo prices.

“Condo developers are avoiding new launches in Greater Bangkok, shifting focus to Phuket where project launches remain active,” said Mr Surachet.

“Many are also concentrating on clearing completed unsold inventory or disposing of units through bulk sales to improve cash flow, while some have used unsold condominium units to settle construction payments with contractors.”

The government’s plan to collect a tourism fee of at least 300 baht through airlines is not feasible because of limitations in airlines’ back-office systems, with the Thailand Digital Arrival Card (TDAC) a better option, say aviation bodies.

The Ministry of Tourism and Sports Ministry last month asked airlines to act as an intermediary platform to collect the fee on behalf of the government.

As the National Tourism Policy Act, which governs the levy, does not cover Thais, collecting the fee from them would be unlawful. The ministry proposed that airlines charge a standard fee to all passengers and subsequently reimburse Thais, with the ministry covering the associated administrative costs.

Sheldon Hee, regional vice-president for Asia-Pacific at the International Air Transport Association (IATA), said collecting a tourism tax through airlines would create additional complications.

Typically, passengers are not required to provide their nationality, passport details or residential address to airlines during the booking process. Airlines only need a passenger’s name and destination, said Mr Hee.

Collecting a tourism fee could also compromise operational efficiency at airports. For instance, he asked what happens if an airline discovers a passenger subject to the tourism tax has not made the payment? It would be difficult for airlines to manage such payments at airports as this is not typically where payments are processed, said Mr Hee.

A better option would be to collect the fee through TDAC, the digital immigration system that foreign visitors are mandated to complete with before entering Thailand, he said.

The Airlines Association of Thailand (AAT) and aviation stakeholders agreed with this conclusion at a recent meeting with tourism ministry officials.

The AAT said Thai airlines operate with different back-office systems. With more than 100 foreign airlines flying to Thailand, embedding the fee with airfares would further complicate implementation.

Aviation executives said TDAC is a better choice as it is administered by the Immigration Bureau and reports directly to the government, unlike airlines, which are largely independent of the state, noted the association.

The tourism tax was first proposed in 2020 but has never been implemented because of frequent changes in government and technical problems. The majority of the revenue from tourism fees would be allocated to tourist insurance, with the remainder used to maintain tourist attractions and improve infrastructure.

The final amount of the fee will depend in large part on the projected costs of accident insurance and treatment at private hospitals.

Unpaid medical bills by foreign visitors cost Thai hospitals around 2.5 billion baht per year, studies have found.

Thailand’s headline inflation is likely to be lower than projected this year as global oil prices decline, says the regulator.

However, domestic goods prices are expected to continue rising, according to executives at the Bank of Thailand.

Speaking at the Monetary Policy Forum on Wednesday, Don Nakornthab, assistant governor for monetary policy at the central bank, said headline inflation for 2026 should come in below the regulator’s previous forecast of 2.8%, primarily due to lower oil prices in both global and domestic markets.

According to the central bank, global oil prices have fallen back to pre-war levels, declining from an average of US$65 per barrel to $64 per barrel as of July 6.

In Thailand, the Oil Fuel Fund Board announced reductions in retail fuel prices, effective on Wednesday. Diesel prices were cut by 2.56 baht per litre, while all grades of gasoline were reduced by 2.51 baht per litre.

Although domestic fuel prices have begun to decline, the pass-through of lower energy costs to consumer prices has yet to be fully realised. As a result, goods prices are expected to continue rising for some time.

“Due to price stickiness, prices of certain goods and services are expected to remain elevated, with limited scope for declines, particularly for food away from home,” said Mr Don.

“Some categories are likely to see price reductions, especially public transport fares, including airfares.”

According to the Bank of Thailand’s Retailer Sentiment Index, around 60% of large retailers expect to raise the prices of their goods and services by no more than 10% over the next three months.

The products most likely to see price increases include essential household goods, fresh and dried food, as well as other food and beverages.

The central bank forecasts headline inflation will slow to 1.4% in 2027, supported by easing tensions in the Middle East, the fading impact of El Niño and a high base effect.

Meanwhile, the regulator upgraded its 2026 GDP growth forecast for Thailand to 2.3% from 1.5%, mainly due to government stimulus measures.

“The central bank is likely to have one of the highest GDP growth forecasts for this year at 2.3%,” said Mr Don.

“However, this is not a satisfactory figure because it remains below the economy’s potential growth rate of 2.7%, while the recovery continues to be uneven under a K-shaped growth pattern.”

Surach Tanboon, senior director of the monetary policy department at the regulator, said medium-term inflation expectations are likely to remain within the central bank’s target range of 1-3% for headline inflation.

The central bank also monitors the salience-based inflation index, which reflects consumers’ behavioural inflation expectations, particularly for frequently purchased items such as food.

In addition, the bank monitors the cheapflation index, which tracks the prices of goods commonly consumed by lower-income households. When prices of these goods increase, consumers tend to perceive inflation as being significantly higher than the headline inflation rate, Mr Surach said.

The House of Representatives on Wednesday unanimously approved in principle two bills to amend the Hotel Act, despite opposition criticism they would not adequately address long-standing regulatory problems.

Lawmakers considered two amendments to the Hotel Act – one proposed by the cabinet and another by Bhumjaithai Party MP Thanayos Timsuwan.

The changes seek to update provisions of the 2004 Hotel Act, which prohibits operating a hotel without a licence. Under current regulations, homeowners may rent out accommodation without a hotel licence only if the property has no more than four rooms and can take no more than 20 guests, provided they notify the registrar under Interior Ministry regulations.

Bhumjaithai lawmakers argued existing limits no longer reflect market conditions and unnecessarily restrict people seeking to earn supplementary income by operating small-scale accommodation businesses. They also said the Interior Ministry has yet to issue the detailed regulations and notification procedures envisaged under the law, creating uncertainty for operators.

While MPs across the political spectrum supported updating the legislation, members of the main opposition People’s Party (PP) said the cabinet’s proposals failed to address broader structural problems in the regulatory framework.

People’s Party MP Taopiphop Limjittrakorn said previous studies had shown the law required more comprehensive reform, warning the government’s amendments alone would not resolve the sector’s regulatory challenges.

He urged the cabinet to support a more wide-ranging amendment bill submitted by PP MP Nattapol Towichakchaikul, which has been classified as a money bill and is awaiting the endorsement of Prime Minister and Interior Minister Anutin Charnvirakul before it can be returned to parliament for consideration.

Thailand and the United Kingdom have intensified cooperation to curb illegal cannabis smuggling, introducing tougher penalties and expanding intelligence sharing following a surge in trafficking cases.

David Thomas, Deputy Head of Mission at the British Embassy in Bangkok, said the measures represented a shift towards preventing offences earlier by deterring people from being exploited by organised criminal networks.

Under a Thai Customs penalty regime introduced on June 17, anyone caught attempting to smuggle cannabis flowers or cannabis products out of Thailand must forfeit the seized goods to the state and pay a fine of 30,000 baht per kilogramme.

Those who fail to pay the fine will face further legal proceedings.

The measure follows two years of joint operations between Thai and UK agencies focused on border security, intelligence sharing and law enforcement.

UK agencies, including the National Crime Agency, Border Force and Home Office International Operations, have worked with Thai counterparts including the Thai Customs Department, Immigration Bureau, Tourist Police and Airport Police.

The tougher approach comes after a rise in cannabis trafficking to the UK. In 2025, nearly 1,000 cannabis couriers were arrested, up 22% from 2024, involving attempts to export more than two tonnes of cannabis with an estimated value of £6 million (268 million baht) in the UK market.

Phantong Loykulnanta, director-general of the Thai Customs Department, said Thailand has strengthened controls on cannabis exports to protect the country’s reputation and build confidence among international partners.

He said cannabis permitted for export must be for medical use, approved by Thai authorities and authorised for import by destination countries.

From Oct 1, 2025 to June 30, 2026, the Customs Department seized illegally traded cannabis in 3,309 cases, involving 37,210kg worth more than 474 million baht. Of these, 3,266 cases involved illegal exports, with the UK the destination in 2,133 cases, accounting for 65% of export cases.

The seizures involved 13,960kg of cannabis with an estimated UK market value of more than 6.2 billion baht.

Mr Phantong said the department had strengthened cooperation with UK agencies under the Thailand-UK Partnership on Cannabis Border Controls and Enforcement. The partnership includes intelligence sharing, passenger and cargo screening, and specialist detection equipment.

Since the new penalty regime took effect on June 17, the Customs Department has arrested 71 people, as of Wednesday, attempting to illegally export cannabis through international airports and seized about 1.3 tonnes of cannabis.

The Constitutional Court ruled on Thursday that the government’s ?400-billion-baht emergency loan was lawful, lifting uncertainty over state spending plans.

The funds were intended to be equally divided between the Thais Help Thais Plus consumer subsidy scheme that started last month, and for financing a green energy transition.

Opposition lawmakers, who brought the case to the charter court, argued that although they backed the clean energy policy, they disagreed with use of an emergency decree.

They also said funding plans for the energy component were vague and merited more detailed parliamentary scrutiny.

The opposition People’s Party argued that the prevailing situation did not meet the strict test of an ‘urgent and unavoidable necessity’ required to justify using an emergency decree instead of a standard parliamentary bill.

Finance ?Minister Ekniti Nitithanprapas maintained that the borrowing is necessary because higher energy prices impact everyone.

‘The court finds that the loan is constitutional,’ the court said in a statement.

The cabinet led by Prime Minister Anutin Charnvirakul in May approved the borrowing decree in a bid to cushion a ?flagging economy from higher oil prices.

‘We are disappointed, but not surprised,’ People’s Party leader Natthapong Ruengpanawut said ?in response to Thursday’s decision.

‘We maintain the government does not need to issue an emergency loan decree because there ?is urgency.’

He said clean energy programmes can use the fiscal budget without turning to emergency borrowing, adding that ?the government’s ?projects did not meet criteria for such a loan.

Projects ‘pre-arranged’?

Sirikanya Tansakun, the party’s deputy leader, expressed concern that some of the energy transition money might end up going to projects that have been quietly pre-arranged.

She said documents circulated to local administrative organisations resembled a ‘catalogue’ of projects eligible for funding, raising concerns that contractors or procurement arrangements have already been lined up.

The government has insisted the borrowing decree is essential ?for the energy transition, citing Thailand’s heavy reliance on imported energy – equivalent to nearly 10% of gross domestic product – as a key vulnerability.

Only months into its four-year ?term, the Anutin government is already facing discontent as a price ?shock driven by the war in Iran deepens a farm debt crisis.

Thailand’s economy, the second largest in Southeast Asia, expanded by only 2.4% last year, lagging regional peers, with 2026 growth forecast ?raised to 2.3%.

Bangkok police have ordered the Huai Khwang police station to scrap the dragon symbol used to represent the station, but brushed aside speculation by online pundits that the logo reflected the influence of ‘grey Chinese investors’.

The use of the logo on officers’ uniform shoulder patches has been criticised by members of the public who say it could be perceived as linked to foreign nationals.

Huai Khwang houses a large concentration of Chinese-run businesses, some of which were facing scrutiny over nominee shareholding, illicit financial activities and gambling.

Pol Col Sorasak Thongmee, chief of the Huai Khwang station, said on Thursday that the logo had been in use for three or four years even before he was appointed in December.

He said he did not know who came up with the original idea but it had no hidden meaning.

‘It is not an issue. Please don’t link it to Chinese investors or anything like that,’ he said.

‘It might have been just an idea. Whoever designed it may have just wanted to find a symbol that is easy to understand. Just like on the Thon Buri side, where some (stations) use important places as symbols.’

Acknowledging public concern about some recent developments in ‘Bangkok’s second Chinatown’, Pol Col Sorasak said police were responsible only for enforcing the law and inspecting businesses to ensure compliance with the law.

The primary checks on permission documents for business are the responsibility of the Department of Business Development, part of the Ministry of Commerce, he said.

In any case, the dragon logo had not been officially approved for use under regulations of the Royal Thai Police, according to Metropolitan Police Division 1.

To ensure that police uniforms are worn in a proper, correct and standardised manner, the division commander, Pol Maj Gen Worasak Phisittabun, ordered the station to drop the logo.

He also stressed that there was no hidden purpose or meaning linking the logo to any group of people.

All police stations under the division’s jurisdiction have also been instructed to review and immediately discontinue the use of any badges, patches, emblems or symbols that do not comply with official regulations, he added.

Nene Royal, a 16-year-old singer-guitarist from Phuket, has become an online sensation after impressing judges and crowds on America’s Got Talent, earning a unanimous four ‘Yes’ votes to advance to the next round.

Rattikarn ‘Praew’ Umloy, known by her stage name Nene Royal, performed a live rendition of The Cranberries’ Zombie on the NBC talent show, combining powerful vocals with guitar skills that drew a standing ovation from the studio audience.

The performance has since gone viral, with Thai and international fans praising her talent on social media. Her audition video posted on the show’s official account attracted 1.5 million views in a day, a high number even for America’s Got Talent.

Nene began playing guitar at the age of six, teaching herself by studying videos online before developing her skills further. She has built a following of more than three million people across social media platforms and was named a featured artist for the global instrument brand Enya Music.

Before her international breakthrough, she was known in Phuket for busking at the Naka Weekend Market with her bands OZONE Band and Miniheart, performing rock and metal covers. She also appeared on the Workpoint 23 programme Super 10, where she shared the stage with veteran rock artist PooH Anchalee.

Her other accolades include first runner-up at the 14th Overdrive Guitar Contest in 2023 and an Outstanding Player award at the King Power Band Competition in 2025.

During her America’s Got Talent audition, Nene introduced herself as a representative of Phuket, Thailand, and revealed she was recording the episode a day before her 16th birthday. Judges and audience members responded by saying Happy Birthday to her on stage.

She said that her biggest dream was to become a superstar on tour.

Following her performance, the four judges praised her stage presence and ‘rock star’ energy, noting that while her performance retained a raw quality, this only added to its charm.

She advanced to the next round accompanied by her father, who had travelled with her for the audition.

Nene is currently working on her own original music, collaborating with professional producers and musicians on her debut EP, a step she describes as an important milestone on her path toward becoming a professional artist on the international stage.

Global crude oil prices remain highly volatile due to geopolitical factors, underscoring the need for Thailand to urgently address its structural weaknesses, says Finance Minister Ekniti Nitithanprapas.

Speaking after oil prices rebounded following renewed strikes between the US and Iran, he said geopolitical uncertainty has intensified, pumping up oil prices again.

“We live in an increasingly volatile world. But regardless of whether oil prices rise or fall, one fact remains unchanged: the Thai economy has structural weaknesses,” said Mr Ekniti. “Thailand relies heavily on imported oil, making the economy highly vulnerable to fluctuations in global oil prices.”

He said any decline in oil prices is likely to be temporary. Therefore, Thailand must urgently reduce its dependence on imported oil.

The impact is reflected in inflation, which accelerated between January and March as oil prices climbed, reversing a period of contraction and increasing the cost of living for Thai households.

Thailand needs to accelerate efforts to expand the use of clean energy, such as solar power for electricity generation, increasing the blending ratio of palm oil in biodiesel, and raising the use of ethanol in gasoline, noted Mr Ekniti.

Kobsak Pootrakool, senior executive vice-president at Bangkok Bank (BBL), said global crude oil prices remain highly volatile amid tensions between Iran and the US.

If the situation eases and the sides reach an agreement, oil prices could fall back to their pre-conflict level of $65-70 per barrel, he said. However, the continued presence of US military forces in the Middle East and military exercises that signal readiness for further operations remain a risk to monitor, said Mr Kobsak.

The latest bout of oil price volatility differs from the early stages of the Russia-Ukraine war, he noted. This time, oil prices surged and retreated within just four months, whereas it took nearly a year for prices to fall back to around $80 per barrel after Russia’s invasion.

Given the heightened uncertainty, Mr Kobsak said it remains difficult to forecast Thailand’s economic outlook this year. BBL maintained its GDP growth forecast at 1.5-2%, below the Bank of Thailand’s projection of slightly above 2% because of the uncertainty, preferring to wait to make a revision.

Regarding inflation, he said Thailand’s rate could rise to 3-4%, depending on how long oil prices remain elevated. Although inflation may temporarily exceed the central bank’s target range during periods of high oil prices, Mr Kobsak expects it to ease naturally once global oil prices stabilise.

In terms of monetary policy, he said the policy interest rate should remain at 1% to support the economy and maintain the baht at around 33 per US dollar, which helps to strengthen Thailand’s export and tourism sectors, providing momentum for economic growth.

Thailand has the potential to become a regional artificial intelligence (AI) and data centre hub by 2035, while positioning itself as a manufacturing base for humanoid robots, a leader in green digital infrastructure, and a primary source of AI talent, say pundits and academics.

“We are entering an AI economy,” Djitt Laowattana, executive board member of the Thai Chamber of Commerce and board chairman of the Robotics and AI Committee, said on Monday at the launch of the UTCC AI Institute, a hub for business AI development driven by the University of the Thai Chamber of Commerce’s (UTCC) Faculty of Engineering.

He said Thailand should aim to become the AI solution hub for Southeast Asia by focusing on becoming an expert in applying AI to real-world business solutions as 85% of the global AI market is focused on downstream applications rather than upstream development.

“While Thailand is attracting foreign data centre investment from Western and Chinese companies, simply hosting them is not enough to build a true, profitable data industry,” said Mr Djitt.

The government and private sector must encourage these foreign hyperscale data centres to run their AI inference models locally within the country, he noted.

“Running these models locally will generate real business value and protect Thailand’s data sovereignty,” said Mr Djitt.

Moreover, the country can become a manufacturing and service hub for humanoid robots, he said. The cost of industrial robotics has dropped dramatically over the past 30 years, and new government tax incentives are accelerating the adoption of automation and humanoid robots.

With top foreign manufacturers already investing in Thai industrial zones, the country has a unique opportunity to become a regional manufacturing and service hub for humanoid robotics by focusing on creating specialised software platforms such as platforms for healthcare or security to operate these robots, rather than just relying on assembling the hardware.

Mr Djitt said that as AI operations and data centres require massive amounts of power and cooling, Thailand must prioritise green energy solutions.

He said it was crucial to develop smart grids, energy storage, direct power purchase agreements and solar farms to guarantee that at least 30% of the energy powering this digital infrastructure comes from renewable sources.

Small local businesses should act like “insects riding an elephant” by strategically partnering and integrating with large enterprises, Mr Djitt added.

Furthermore, Thailand must urgently build up its talent pool in AI and robotics through academic collaborations and clusters such as the UTCC AI Institute.

Chanwit Boonchuay, president of the AI Entrepreneur Association of Thailand, said the AI market in Thailand is worth 50 billion baht, of which 200-300 local AI companies only capture roughly 2-3 billion baht, leaving the vast majority of the revenue to foreign back-end providers.

AI Institute

Thanavath Phonvichai, president of UTCC, said that to prepare for the future the university adopted an “AI first” approach, integrating AI into 100% of its courses. The school’s roadmap has progressed from being a generative AI university to being an “AI with data-driven” university, he said.

Recognising that 1% of students studying AI and information and communication technology is insufficient, UTCC aims to push that number to 10%, transforming Thai business expertise into AI assets that directly support Thai enterprises, Mr Thanavath said.

The institute is to serve as a university-level platform for applied AI for business, linking education, research, innovation, industry and international networks, he noted.

UTCC has introduced the Thai industry AI transformation initiative, the AI solution factory and digital workforce lab, and the AI talent for Thailand project. These initiatives are part of a five-year roadmap to position the institute as a leading applied AI platform in Thailand and the region.