Supply stalls as buyers tighten purse strings

· Thai Property Desk

Developers are halting projects and cutting prices on second-hand stock as purchase power weakens. The market is splitting sharply between affordable units, which sell, and higher-priced homes, which stack up unsold.

AP Thailand wins developer crown at tenth-anniversary awards

AP (Thailand) Public Company Limited received Developer of the Year Thailand 2026 at the Thailand Real Estate Awards ceremony held on August 27 at Four Seasons Hotel Bangkok.

The awards marked their tenth anniversary and rebranded under the Southeast Asia Real Estate Awards platform, backed by Dot Property Group. AP Thailand was recognised for its portfolio of over 200 projects nationwide and influence on residential living standards. The company also received the Excellence in High-Rise Development award.

Winners came from across Thailand: Bangkok, Phuket, Pattaya, the Eastern Seaboard, Hua Hin and Koh Samui. InterContinental Residences Bangkok Asoke took Best Ultra Luxury Condominium Thailand, while Cinquième Krungthep Kreetha took Best Ultra Luxury Housing Development Thailand.

Radisson to operate serviced apartments at Phuket condominium

Radisson Hotel Group will manage one of four buildings at Next Point Condominium in Rawai, Phuket. The development holds 372 units across four buildings and is due for completion in Q4 2028. Construction began on 8 December 2025.

One building will operate as Radisson Serviced Apartments Rawai Phuket, comprising 118 keys managed to hotel standards. The other three buildings offer both freehold and leasehold units. Prices start from 4.2 million baht in buildings 1 to 3 and 5.75 million baht in the Radisson building, which is leasehold only.

The development sits on approximately 5 rai with 4,200 square metres of facilities including four swimming pools, a rooftop infinity pool up to 50 metres, spa, co-working space, restaurants and underground parking for 140 cars and 80 motorbikes. Nai Harn Beach is 4 km away. Eligible units in buildings 1 to 3 offer a contractual rental return from 6% per annum for the first three years.

Pattaya's oversupply is concentrated in specific areas

Pattaya's condo market tells two stories at once: oversupply is real, but foreign buyers still account for roughly a third of all condos sold to foreigners in Thailand. The pressure is concentrated in Jomtien and the southern beachfront, where resale units average 180 days to sell. Prime beachfront units move in 30 to 60 days.

Myanmar buyers have increased sharply and are relocating rather than speculating. Russian transfers rose 33% year on year. Chinese numbers fell 39% as China's property market struggles. Foreign buyer transfers in 2025 totalled 14,899 units across Thailand; Chon Buri accounted for close to a third of them, second only to Bangkok by value.

Gross rental yield in Pattaya runs 5 to 8%, outpacing Bangkok's 4 to 6% at lower entry prices. Jomtien achieves 6 to 7% yield because entry prices are low enough to make the rent-to-price ratio work. Pratumnak Hill, between North Pattaya and Jomtien on price, shows steady renovation activity and rents that frequently run ahead of Jomtien's. Price growth across well-located segments is forecast at flat to 2 to 4% through the rest of 2026. The U-Tapao airport expansion and high-speed rail to Bangkok are both under construction and not yet priced into inland segments.

Bangkok and suburbs see unit transfers up but values down

Bangkok transferred 17.0% more units in the first five months of 2026 but total value grew only 4.4%, showing buyers shifting toward cheaper stock. Samut Prakan saw units rise 7.4% while total value fell 9.5%.

Three factors are pushing down total value. First, second-hand sellers are cutting prices to speed sales: average prices for second-hand single homes in Samut Prakan dropped 30.9% and Bangkok 10.9%. Second, buyers are rejecting expensive new-build homes and choosing condos or smaller townhouses at lower prices. Third, stricter credit rules and household debt limits are cutting real purchasing power at mid-market price points.

Bangkok's condo market grew sharply: units up 24.9%, value up 16.0%. But single homes slumped (units down 0.7%, value down 9.0%), and commercial buildings collapsed (value down 48.4%). The market is not short of demand but short of stock that matches what buyers can actually afford.

Six projects halted as developers hit regulatory and credit headwinds

In the first half of 2026, developers halted sales on six projects worth 23,939 million baht and 4,136 units, with three main reasons: 31% failed environmental impact assessments; 22% could not sell the product for that location; 19% hit credit constraints from banks.

Of 3,098 projects with listings in Bangkok and suburbs, 2,670 still held over 20 unsold units. The market has not reached crisis point yet: the second half of last year saw eight projects close with fewer units (3,964) and lower value (17,880 million baht). In H1 2026, 26,780 units sold: 14,439 condos (53.9%), 6,820 townhouses (25.5%), and 3,393 single homes (12.7%).

Developers are shifting toward higher-value projects. New-build launches in H1 2026 totalled 97 projects (down 15.7% year on year) but with 37.3% higher total value. Average project size rose to 176 units from 135, and average price per unit to 8.906 million baht from 7.172 million baht. With 210,112 units still waiting to sell mid-year, absorption would take 49.5 months if no new projects launched. Townhouses make up 32.8% of unsold stock, followed by condos (29.3%) and single homes (24.6%).

Sansiri invests 40,000 million baht in Phuket over five years

Sansiri plans 30 new projects worth 40,000 million baht over five years in Phuket, targeting a combined portfolio value of 80,000 million baht. The developer has put 40,000 million baht into Phuket over 15 years since 2011, developing 11,000 units.

Phuket is shifting from "Holiday Island" to "Global Metropolitan" driven by airport expansion to 20 million passengers per year, infrastructure investment over 62,000 million baht, and 290 international flights daily connecting 71 cities in 36 countries. International schools number 19 with over 5,000 foreign students from 50 nationalities. Luxury villa market grew 12.9% in H1 2026; prime areas like Bang Tao achieve net rental yield of 6-8%, higher than global resort destinations like Saint-Tropez (3-4.5%) and Monaco (1.5-2.5%).

Sansiri's Phuket sales reached 3,000 million baht in H1 2026, up from 2,300 million baht in the same period last year. Full-year sales are targeted at 5,000 million baht with 20% growth in transfers. Backlog stands at 5,000 million baht with over 100 ready-to-move units worth 500-600 million baht. The pipeline includes seven new launches in H2 2026: four condos at Patong Beach (3.9-10.9 million baht), Rawai (4.99 million baht), Samkong (2.99 million baht), and Canvas Phuket (8.99 million baht), plus three pool villas including The Tales Bang Jo (from 45 million baht). Foreign buyers currently represent 25-30% of sales, expected to rise to 40-45% within five years.

Rama 9 and Bang Na lead search interest for homes

Rama 9 dominated online searches for condos at 42% of discussion, with buyers citing convenience to BTS, proximity to work, and prices lower than central areas. The search data comes from social listening and monitoring from January to June 2026 across all platforms.

For condos, Rama 9 led at 42%, followed by Sukhumvit (24%), Don Mueang (14%), Ekkamai (11%) and Vibhavadi Rangsit (9%). Buyers prioritise BTS access, proximity to work, and full amenities. Popular units are one-bedroom with common areas including gardens and recreation spaces.

For houses and townhouses, Bang Na dominated at 75% of discussion, with buyers emphasising commute convenience and complete amenities, particularly green space. Rama 2 came second at 9%, followed by Rama 9 and Thonglor at 6% each, and Pattanakarn at 4%. Household debt remains high at 86.7% of GDP; NPLs climbed to 9.59% of total credit. Bank credit rejection for housing reached 44.9% in H1 2026, up from 39.8% year-on-year.

Market pressure is pushing toward value and convenience over size and luxury.

Sources

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