Launches of new residential supply in Greater Bangkok will decline for a third consecutive year in 2025, largely attributed to an increase in unsold units carried over from 2024, an uncertain economy and high household debt, according to Kasikorn Research Center.
Last week the centre forecast that there would be a 0.7% year-on-year decrease in new residential supply launched in Greater Bangkok in 2025, down from around 61,450 units launched last year.
The figure for 2024 shrank by 39.5% from around 102,000 units in 2023, which had dropped 5.2% from around 107,000 units in 2022. The 2022 figure represented a 77% surge from a pandemic-era low of around 60,000 units in 2021.
-->
In 2024, all housing types saw a decrease in new supply, led by condos which fell 43%, followed by townhouses (down 41.5%), and single detached houses (down 20.8%).
Despite a significant drop in new supply, the centre expects that the cumulative number of unsold units will not decline, likely exceeding 230,000 units more than the total recorded at the end of 2023.
Prasert Taedullayasatit, president of the Thai Condominium Association, said market sentiment last year was very poor as home purchasing power was weakened by low economic growth and high household debt.
Geopolitical conflicts, high interest rates and high mortgage rejection rates carried over from 2023, along with lending curbs that remained a major obstacle, were making it difficult for homebuyers to complete unit transfers.
Source: Bangkok Post
