Thailand's Property Sector Faces Unprecedented Challenges

Thailand's property industry is facing a critical situation as escalating household debt and stringent credit conditions threaten its stability. Experts highlight a perfect storm brewing that could endanger the sector's future.

Household Debt Reaches Alarming Levels

The country's household debt has skyrocketed to 90% of GDP in Q1 2025, amounting to 16.2 trillion baht. Housing loans make up 37.9% of this total, with a significant portion at risk of default.

Economic Growth Stagnates

With economic growth projections at a mere 2% for 2024 and 1.5% for 2025, financial institutions are becoming increasingly cautious, leading to a sharp decline in loan approvals.

Developers Struggle with Corporate Bonds

The corporate bond market is under stress, with developers facing difficulties in repayments. The situation is exacerbated by negative liquidity and eroding investor confidence.

Call for Coordinated Action

Experts urge immediate measures from developers, government, and financial institutions to prevent a market collapse. Strategies include cash flow management, asset conversion, and financial planning.

Government and Financial Sector's Role

Proposed interventions include liquidity boosts, tax relief, and mortgage insurance to stimulate the market and address the crisis.

Urgent measures are needed to navigate through this crisis and ensure the long-term sustainability of Thailand's property market.