Thailand’s real estate sector is bracing for potential turbulence in 2025, as trade war anxieties intersect with a surge in foreign investment, according to analysts at a major industry seminar.
Leading figures from the Thai Development Research Institute (TDRI) and Asia Plus Securities warned of economic headwinds, while highlighting emerging opportunities for developers.
Dr Kirida Bhaopichitr, TDRI’s Economic Intelligence Service Project director, identified US trade policy in the second Trump presidency as the most significant risk to both the Thai and global economies.
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The US Trade Representative’s Office (USTR) is expected to announce trade measures on April 2, and Thailand, which enjoys a trade surplus with the US, is likely to be targeted.
“Thailand will need to navigate these trade tensions carefully,” Kirida said. “Increased imports from the US and a reduction in trade barriers may be necessary, potentially opening markets for US agricultural and automotive products.”
Amidst these challenges, the trade war is also driving a significant shift in global production, presenting Thailand with a unique investment opportunity.
Similar to the “Plaza Accord” 40 years ago, which spurred Japanese investment, the current climate is attracting record levels of foreign direct investment, particularly in the Eastern Economic Corridor (EEC).
“The EEC is poised for substantial growth,” Dr Kirida noted, “offering significant potential for real estate development following industrial investment.”
Tourism is also expected to provide a boost, with TDRI projecting up to 40 million foreign tourists in 2025. This influx could stimulate demand for condominiums, mirroring pre-pandemic trends. However, challenges remain.
The assistant managing director of Asia Plus Securities, Therdsak Thaweetheeratham, highlighted the need for developers to reduce existing inventory, accumulated from recent slow sales.
He noted that while new project launches were expected to decrease slightly, ongoing development projects remain substantial.
Source: The Nation
