Bangkok Condo Market Faces Challenges in Q4 2024

The Bangkok condo market remains subdued in Q4 2024, reflecting findings from the Bank of Thailand (BoT) survey that projected a decline in housing loan demand. Stricter lending conditions and weakened purchasing power continue to pose significant challenges, particularly in the 1–3 million baht price range. For those looking to buy a condo in Bangkok, the current market presents both challenges and opportunities.

Economic Factors Affecting the Market

Nattha Kahapana, managing director at Knight Frank Thailand, emphasized the ongoing pressure on the condo market. “Although interest rates have decreased by 0.25%, they remain relatively unchanged overall, and the market is expected to continue its slowdown,” he said. Despite potential gradual recovery in personal incomes by 2025, housing loan demand is unlikely to return to normal levels due to cautious lending practices by financial institutions.

Developers are urged to implement strategies to reduce risks and clear unsold units. Flexible payment terms, low-interest rates, and minimal upfront costs are some of the incentives that could help attract buyers in this challenging environment.

Insights from Q3 2024

The third quarter of 2024 saw a sluggish performance in the Bangkok condo market. Despite government measures such as reduced mortgage registration fees for residential units priced below 7 million baht, the mid-to-low-end market continued to struggle. Rising household debt and reliance on credit card loans for daily expenses further dampened demand for housing loans. Approximately 30,000 unsold units from completed projects remain a critical concern.

Supply Trends

The number of newly launched condo units in Q3 2024 dropped sharply to 2,093, marking a 71.4% decline from Q2. Key highlights include:

• Inner City: Limited new launches, focusing on privacy and exclusivity, reflecting scarce land availability.
• City Fringe Areas: Accounted for 28.6% of new projects, with prices typically exceeding 120,000 baht per square meter.
• Suburban Areas: Represented 58.9% of new launches, with similar pricing trends to city fringe developments.

This supply pattern underscores developers’ confidence in targeting higher-income buyers while attempting to mitigate risks associated with unsold inventory.

Slowing Demand and Unsold Inventory

Only 25% of the newly launched units in Q3 were sold. Grade B projects priced between 3.5–7 million baht attracted the most interest, while units priced at 2.5–3 million baht were popular among investors. However, many end-user buyers leaned towards renting rather than purchasing.

Suburban areas reported the highest unsold inventory rate at 64.7%, while the central business district had the lowest at 12.8%. This disparity highlights the challenges of matching supply with demand in different parts of Bangkok.

Price Trends

Condo asking prices showed mixed movements across Bangkok in Q3 2024:

• Central Business District: Decreased by 4.1% to 239,504 baht per square meter.
• City Fringes: Fell by 3.3% to 123,216 baht per square meter.
• Suburban Areas: Increased by 5% to 72,703 baht per square meter.

Overall, the average asking price declined by 0.8%, reflecting developers’ efforts to clear unsold units and adjust to market conditions.

Amazing Properties and Real Estate Opportunities

For those seeking to buy a condo in Bangkok, this subdued market offers opportunities to find incredible deals, especially in segments with high unsold inventory. Whether you’re looking for a luxurious city-center residence or a budget-friendly suburban condo, Bangkok’s real estate market has something for everyone.

Our real estate agency in Bangkok specializes in connecting buyers with the best properties, from affordable condos to high-end luxury condos in Bangkok. We’re here to help you navigate the market and secure the best investment opportunities.

Looking Ahead

While challenges persist, the Bangkok condo market is poised for gradual improvement as personal incomes recover and developers adapt their strategies. For buyers and investors, this period presents a chance to capitalize on competitive pricing and attractive incentives.

Contact Amazing Properties, your real estate agency in Bangkok to explore the latest condo listings and find your ideal property. Whether you’re looking to invest, upgrade, or secure your first home, our team is here to guide you every step of the way.