The housing markets in Bangkok and its surrounding areas is expected to contract in 2025, but is projected to improve in 2026 with a 5% growth.

 

Dr. Sopon Pornchokchai, President, Agency for Real Estate Affairs stated at the 2026 Housing Markets Outlook seminar, held annually for 32 years and summarizing the latest field survey results up to the end of 2025, that the overall Thai real estate markets in Bangkok and its surrounding areas in 2025, compared to 2025, shows a decrease in the number of new projects, units, and project value, but an increase in the average selling price per unit. Development can be broadly categorized into two main groups: the mid-to-high-end segment with selling prices not exceeding 5 million baht, and the segment with prices of 5 million baht and above. 

 

Launching of new projects

From January to December 2025, there were a total of 265 real estate projects, comprising 259 residential projects and 6 other types of projects. The total number of units sold in the markets reached 41,556, with a total development value of 291,274 million baht. The average selling price per unit was 7.004 million baht. November saw the highest number of projects launched (43), while also having the highest number of units launched (6,061 units, 14.6%), with a total project value of 62,818 million baht (21.6%).

This surge in launches, particularly of single-family homes and condominiums, before the year-end deadline resulted in higher sales volume in November compared to other months. The average selling price per unit of real estate in 2025 is projected at 7.004 million baht, an increase from the average price of 6.782 million baht in 2025 (3.3%). Considering only residential properties, the average price is 7.004 million baht, while other types of real estate average 9.981 million baht.

 

 

 

Current market conditions

By the end of 2025, Bangkok and its surrounding areas are projected to launch 41,490 new units, a 32.5% decrease from the 61,453 units launched in 2024. In terms of value, there's also a 29.8% contraction, with 290,615 million baht worth of units launched in 2025 compared to 413,773 million baht in 2024. However, the average price of housing units launched in 2025 is projected to be 7.004 million baht, compared to 6.733 million baht in 2024, indicating that new properties are more expensive and less affordable for lower-income earners.

 

 

Currently, there are 221,805 unsold units in the hands of developers, expected to be sold out in 49.8 months. This situation is improving because the number of units above this figure has decreased from almost 240,000 units two years ago, indicating that a significant portion of the supply has been absorbed. Fewer new project launches and increased absorption of existing supply suggest a potential recovery in the housing markets in the future.

 

 

Price changes broken down by price level

Changes in housing market prices at the end of 2025, broken down by house type.

 

 

From the table above, it can be seen that the average selling price of residential properties six months ago was approximately 4.612 million baht, while in the current survey, the average price is 4.477 million baht. This indicates that overall residential property prices have decreased by approximately -2.9%. The type with the largest decrease is land plots (-4.7%), followed by commercial buildings (-4.1%), condominiums (-3.5%), and townhouses (-2.8%). All property types have seen price decreases. Overall, it can be seen that residential property prices have mostly decreased in this survey, but this decrease is only slight, reflecting the continued slowdown in the economic market.

Overall, housing prices have decreased, with price reductions seen across all price ranges. The lowest price segment, below 0.5 million baht, experienced the largest decrease at -5.0%, followed by the 1.001-2.000 million baht range at -4.0%, and the 0.501-1.000 million baht range at -3.5%. Prices below 0.5 million baht remained unchanged.

This price decline is attributed to the previous surge in developers releasing high-end products, resulting in excess inventory and increased price competition. Developers subsequently lowered their prices, accompanied by year-end and New Year promotions. However, rising production costs, such as interest rates, construction material prices (in line with inflation), and oil prices, limited price reductions. Consequently, average price decreases were limited to mid-to-high-priced segments, while mid-to-low-priced segments saw price increases.

 

The future of the housing markets

Currently, there are still negative factors affecting the housing market, such as the LTV (Loan-to-Value) measures, which should be maintained but make purchasing more difficult; high levels of household debt, making it impossible to buy a house; rising business costs; tighter lending standards; global market volatility; and the increased possibility of international warfare.

 

Positive factors also exist, such as the possibility of further government stimulus measures for the real estate sector, interest rates remaining stable or possibly being slightly reduced, and potential economic and tourism stimulus measures, which would further boost the real estate market.

Agency for Real Estate Affairs also forecasts that the real estate market, especially residential properties, will likely recover by about 5% in 2026. However, in the medium term, such as 2027-2029, the markets may remain stagnant due to the slow growth of the Thai economy.

 

Note:

Agency for Real Estate Affairs is Thailand’s largest real estate information centre established since 1994 with services on valuation and property information. We refrain from property development or brokerage services to stay impartial in the markets.  Our real estate information centre has no presidents of associations of real estate developers to be our board members to stay neutral and professional.