Bangkok Condo Supply Plummets to Unprecedented Levels

In a startling development, new condo launches in Bangkok have plunged by 94% year-on-year, reaching a mere 373 units. This marks the lowest point since the subprime crisis in 2009, even surpassing the downturn experienced during the peak of the Covid-19 pandemic.

Developers and Analysts Urged to Reassess Strategies

The dramatic drop has prompted a swift reevaluation of approaches by property developers and analysts alike. Pattarachai Thaweewong, director of research at Colliers International Thailand, notes, "This is not merely a seasonal slowdown but a clear signal of buyer hesitation and cautious decision-making from developers."

Market Struggles to Regain Pre-Crisis Momentum

Despite a slight recovery between 2022 and 2023, the market has failed to recapture its pre-crisis vitality. The current downturn is especially stark when compared to the typical second quarter average of 8,000 to 12,000 new condo launches seen over the past decade.

Factors Behind the Sharp Decline

Thaweewong points to several contributing factors, including high interest rates eroding buyer purchasing power and escalating development costs due to rising construction material and land prices. Additionally, ongoing economic uncertainty and a lack of clear government policy direction are further dampening confidence.

Shift in Focus to Phuket

As Bangkok's market cools, developers are turning their attention to Phuket, aiming to tap into demand from tourists and retirees, particularly from China and the U.S. An estimated 10,000 new flats are set to enter Phuket's market this year, with new projects launching weekly.