New residential supply launched in Greater Bangkok this year is expected to continue to decline after hitting a multi-year low in 2025, as a large amount of inventory remains unsold and developers become more cautious about investment.
Prasert Taedullayasatit, president of the Thai Condominium Association, said in 2025 both presale value and new launch value hit a 12-year low due to several factors, particularly the economic slowdown over the past two years.
"Housing has become more difficult to sell because purchasing power has continued to weaken and household debt remains high. Financial institutions have tightened mortgage lending, resulting in slower absorption of supply," he said.
"New supply launched this year will likely decline further."
Mr Prasert says the focus now for developers is liquidity rather than the bottom line.
According to Mr Prasert, the value of new residential launches in Greater Bangkok last year totalled 294 billion baht, shrinking by 31% from 427 billion in 2024, which fell by 28% from the post-pandemic peak of 592 billion in 2023.
The 2025 figure was the lowest in more than a decade, including the pandemic years of 2020 and 2021, when new launches totalled 394 billion baht and 420 billion, respectively.
New launches were closely tied to presales, which also fell to the lowest level in more than a decade last year at 260 billion baht, down 13% from 300 billion in 2024 and the post-pandemic peak of 430 billion in 2023.
The average annual value of new launches during 2014-25 was 447 billion baht, while average presales tallied 372 billion baht.
All housing types launched and sold in 2025 declined across the board for the second consecutive year, led by condos, where new launches contracted by 41% to 77.2 billion baht and presales dropped by 17% to 96.5 billion baht.
Townhouses recorded a dip in new launches of 27% to 33.1 billion baht, while presales declined by 16% to 35.7 billion.
Single detached houses recorded a 27% drop in new launches to 184 billion baht and a 9% decline in presales to 128 billion.
"Some developers need to either freeze or scale back new launches and focus on clearing their inventory," he said.
"They need to generate cash flow by accelerating transfers and selling existing stock, often through major promotions to maintain liquidity as interest and operating costs continue to rise. The focus is now on liquidity rather than the bottom line."
REJIG OF EXISTING PROJECTS
Mr Prasert, who is also chief executive of SET-listed Ananda Development, said the company plans to launch only two new projects this year: condo developments in Saphan Khwai and near Chulalongkorn University.
"Both projects are located on our existing land bank and were originally planned for earlier launches," he said.
"Acquiring new land for development requires significant capital."
The Saphan Khwai site was previously launched in 2019 as Ideo Q Phahol–Saphan Khwai, with prices starting from 5.5 million baht per unit or 190,000–200,000 baht per square metre.
However, sales did not meet expectations, prompting the company to cancel the project and refund booking fees to customers.
The project is being remodelled into condos where each unit features a five-metre ceiling height with two levels. Unit sizes start at 40 sq m, with prices from 3.8 million baht.
For low-rise housing projects, Ananda will redesign and rebuild some units to better match market demand, said Mr Prasert.
For example, several small bedrooms may be combined into one large bedroom, while adjoining plots may be merged to create larger houses that can be sold at roughly double the price.
Ananda also plans to rent out 100 unsold units at Ashton Asok, a condo project in a legal dispute over its building permit after the Administrative Court ruled the project's access road did not meet legal requirements.
The company plans to offer the units together with tenants to investors, he said.
FREEZING NEW LAUNCHES
Supachoke Panchasarp, chief executive of SET-listed developer Asset Five Group (A5), said the company will not launch any new projects this year, instead focusing on clearing inventory at existing developments while introducing new phases.
"Property developers need to react quickly to market conditions. If they respond too slowly, they may fall behind, as even a small project takes at least two years to complete, while larger projects can take 8-10 years," he said.
"Over the past few years, the market has changed quickly -- conditions at the beginning of the year can be very different from those at the end."
While A5 eschews launches this year, the company prepared five new projects worth a combined 5.1 billion baht for launch from 2027.
These are located in areas with strong demand, such as Krungthep Kreetha, Phatthanakan, Ram Intra-Watcharapol, and the Ratchaphruek area.
One of the new projects in the Ratchaphruek area will offer units priced between 18-30 million baht, lower than the company's inventory, where unit prices range from 30 million to 250 million baht, said Mr Supachoke.
A5 also diversified into two recurring income businesses. A5 Design is an interior design service launched earlier this year that already secured jobs worth 100 million baht.
The other is Upper Class Solution, which provides property management and concierge services for the luxury home segment.
The company expects recurring income to account for 20% of total revenue within the next few years, equivalent to 300-400 million baht annually.
