Thailand’s Luxury Property Market Slows Down

Amid ongoing economic uncertainties, Thailand's real estate sector is experiencing a significant slowdown in demand for high-end properties, including luxury homes and condominiums.

Developers Pivot to Phuket and Hospitality

In response to the sluggish market, developers are turning their attention to Phuket's thriving international market and expanding into the hospitality sector, seeking more sustainable growth opportunities.

Nattapong Kunakornwong, CEO of SC Asset Corporation, highlights a shift in consumer behavior, with buyers becoming more hesitant and reliant on loans, further complicated by stricter lending conditions.

International Demand Offers a Silver Lining

Despite local market challenges, international buyers from China, Russia, and Myanmar continue to fuel demand for luxury condominiums in tourist hotspots like Phuket.

Kromchet Vipanpong, CEO of Assetwise, notes strong interest from emerging markets, including Israel and India, in Phuket properties, alongside plans to venture into the hospitality industry with the "VOCO Phuket Bangtao" hotel.

Adapting to a Changing Market

Developers like Sansiri and Property Perfect are adapting strategies to navigate the downturn, focusing on liquidity management, debt reduction, and targeting affluent international investors for long-term growth.