The Greater Bangkok housing market is entering a structural shift, with developers cutting new supply while condo sales recover and accumulated unsold inventory declines, according to the Real Estate Information Center (REIC).
Siddhipen Siddharthapong, acting assistant director-general of REIC, said accumulated remaining supply in Greater Bangkok fell 10.2% year-on-year to 202,414 units in the second quarter, while new sales increased 2.6%.
The recovery was led by condos, with new sales rising 19.5%. Their average absorption rate tallied 2.4% a month, leaving about 39 months of remaining supply.
By comparison, new sales of low-rise housing fell 11.4%, with absorption at 1.4% a month. At that pace, developers would need about 67 months to clear the remaining supply.
“Developers were limiting new launches as the market moved towards a new balance,” Ms Siddhipen said.
Total supply was 214,083 units, down 9.6% year-on-year, while new supply declined 15.6%. New launches of low-rise housing fell 28.6%, while their value dropped 51.9%.
“The figures suggest developers are adjusting their product mix towards more affordable price points, particularly as purchasing power remains constrained and mortgage rejection rates continue to pressure the mass market,” she said.
In Bangkok, total supply fell 6% year-on-year to 88,528 units, while new sales increased 3.8%. Condominium sales rose 14.7%, contrasting with an 18.4% decline in low-rise home sales.
LOWER PRICES
Bangkok’s new supply increased 77.2% in unit terms, but its value fell 35.2%, with the average price per unit dropping from 20 million baht to 7.3 million baht.
“The market is being reshaped by changing urban patterns, higher land and construction costs, and the expansion of mass transit networks beyond central Bangkok,” Ms Siddhipen said.
Bangkok is developing into a network city, with growth spreading into multiple sub-centres rather than remaining concentrated in the central business district, she noted.
The new hotspots are being driven by mass transit access, proximity to employment, shopping centres and hospitals, as well as amenities that match changing lifestyles, said Ms Siddhipen.
REIC identified Rama 9-Ratchada as a new central business district, supported by premium offices and condos, while Bang Na-Suvarnabhumi-Eastern Economic Corridor is emerging as an eastern business district. The latter is supported by industrial, logistics and megaproject development, making it a potential location for luxury detached homes, according to the centre.
Purchasing power is increasingly split between high-end and mass market segments, with luxury demand supported by larger homes, prime locations, health-related innovations and enhanced security.
The mass market faces greater pressure from mortgage rejections, requiring developers to align locations and price points more closely with household incomes and changing consumer behaviour.
REIC also highlighted growing interest in smart homes, artificial intelligence and environmental, social and governance features as developers adapt to new consumer preferences.
Within Bangkok, Sukhumvit condos recorded a 139% year-on-year increase in new sales, with absorption reaching 5.2% a month and remaining supply equivalent to about 16 months.
However, high-priced low-rise housing remains challenging in some locations, including Phra Khanong-Bang Na and Sukhumvit, where newly launched homes priced greater than 10 million baht have recorded weak sales.
“The data indicate Bangkok’s housing market is not recovering evenly, undergoing a shift in product type, affordability, location and consumer demand as developers seek a new market equilibrium,” Ms Siddhipen said.