Bangkok housing projects plummet, campus condos rise this year
Property slump deepens as developers hold back amid economic uncertainty
LWS, a subsidiary of L.P.N. Development, reported a significant decline in new housing projects in Bangkok and its surrounding areas during the first quarter of 2025. The number of new projects and their value dropped by more than 50%.
In contrast, campus condominiums have seen growth. The company hopes government measures to reduce fees will stimulate the market in the latter part of the year.
Prabhansak Raksachaiwan, Managing Director of LWS Wisdom and Solutions, a real estate research and development firm under L.P.N. Development, revealed the findings of a survey on new residential projects launched in Bangkok and its suburbs from January to March. The number of new projects decreased by 36% compared to the same period last year, with 51 new projects comprising a total of 10,062 units.
The value of these launches was 51,268 million baht, a 46% decrease. However, the average sales rate on launch day improved to 20% from 12% last year. Comparing the first quarter of 2025 to the fourth quarter of 2024, there was a 53% decrease in new project launches and a 61% drop in value. The average launch price during this period was 5.15 million baht.
Breaking down the types of new projects in the first quarter of 2025, there were 16 condominium projects totalling 6,173 units, valued at 16,212 million baht, marking increases of 8% and 16%, respectively.
The sales rate on launch day was 29%, an improvement from 19% the previous year, with an average sales price of 2.63 million baht per unit, up slightly from 2.45 million baht. The highest number of units and sales were for campus condos near educational institutions, such as Bangkok University’s Rangsit campus, aimed at investors and students.
In the first quarter of 2025, there were 38 new housing project launches, with 14 projects priced under 10 million baht, down 74%. These new launches included 2,632 units, a 67% decrease, valued at 10,622 million baht, a 70% reduction compared to the same period last year.
The sales rate on launch day was 4%, down from 7% the previous year. The average price per unit was 4.04 million baht, a 9% decrease from 4.46 million baht last year.
The highest number of new launches was in the Bang Na-Suvarnabhumi area, with the Central Westgate area showing strong sales. Housing types included semi-detached homes priced at 3-5 million baht and single houses at 5-10 million baht.
Photo of Bangkok’s Wattana district courtesy of Bangkok Post
For new housing projects priced over 10 million baht, there were 23 projects with 1,257 units valued at 24,434 million baht, representing decreases of 4%, 34%, and 46% respectively compared to the previous year. The average sales rate on launch day was 5%, down from 9% the previous year. The average launch price was 19.4 million baht, an 18% decrease from 23.8 million baht last year.
The Bang Na-Suvarnabhumi area saw the most new launches, while the Wong Waen-Phatthanakan area recorded the highest sales, especially for single houses priced between 10 and 30 million baht.
Prabhansak noted that factors impacting the real estate sector in the first quarter include the slowdown in global and Thai economic growth, with the Thai economy expected to grow by less than 2% this year. The US trade policy imposing a 37% tariff on Thai imports affects exports and private investment.
Additionally, banks remain stringent on loan approvals despite a slight reduction in household debt, which remains high at 89.6%, reported KhaoSod.
However, the government’s measure to reduce transfer and mortgage fees to 0.01% for homes priced up to 7 million baht until June 30, 2026, is expected to positively stimulate property buying power in the last nine months of 2025.
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