Thailand's Real Estate Market in 2025: Prices Surge in Bangkok and Phuket, Average Apartment Cost Exceeds $300,000

Property prices in Thailand continue to rise steadily, although the rate of growth has slowed. In Q4 2024, according to data from the Bank of Thailand, housing prices increased across all segments.

Nationally, house prices (villas) grew by 2.55% year-on-year, while townhouse prices increased by 3.53%. However, when adjusted for inflation, the annual price growth stood at 1.54% and 2.51%, respectively.

By the end of the year, price growth in Bangkok was below the national average, which is unusual for the Thai real estate market and may indicate that the capital's prices are approaching their peak.

House (villa) prices in Bangkok rose by 2.41% (1.40% adjusted for inflation), while townhouses increased by 3.19% (2.27% adjusted for inflation).
Apartment (condo) prices saw a significant slowdown, dropping from 7.20% year-on-year in Q3 to just 2.46% in Q4 (without inflation adjustment).
A market analysis by Global Property Guide (February 2025) revealed that the highest condo prices are in Bangkok and Phuket, where the average two-bedroom apartment now costs $303,209 and $296,134, respectively.

Following them are Pattaya (Chonburi) at $178,311 and Samut Prakan at $106,845. The most affordable location is Nonthaburi, where a two-bedroom unit averages below $100,000 ($89,230).

Expert Opinions

Industry experts expect a further moderate price increase in the short term, as developers focus on clearing existing inventory amid subdued demand before the market enters a new growth phase.

Atip Pichanon, Honorary President of the Housing Business Association of Thailand, predicts that prices will rise by 2-3% in 2025, stressing that land costs in each location are a major factor influencing pricing trends.

Surachet Kongcheep, Managing Director at Property DNA, shares this view, stating that developers will likely maintain stable prices for completed projects due to excess supply. However, he is slightly more optimistic, forecasting a 5-7% annual price increase in 2025.

Key Trends in Thailand's Real Estate Market

The number of property transactions continues to decline, although at a slower rate.

Housing demand remains subdued, but early signs of improvement compared to early 2024 have emerged. According to the Real Estate Information Center (REIC), the total number of registered transactions declined by 7.4% YoY, with low-rise housing down by 12.8%, while condominium sales rose by 5.6%.

Despite the decline, the drop in transactions is slowing. This is largely due to government stimulus measures, such as Thailand’s Ministry of Finance approving a reduction in housing purchase fees for properties under 7 million baht ($210,500) to 0.01% in early 2024.
The total value of property sold fell by 8.0% to $21.21 billion in the first three quarters of 2024, reflecting a decline in both low-rise housing (-9.2%) and condominiums (-5.2%).

Foreign Buyers in Thailand’s Real Estate Market

Despite market trends, foreign demand for Thai real estate remains strong. According to REIC, in the first three quarters of 2024, foreign buyers purchased 11,036 apartments, marking a 3.1% YoY increase. The total value of these transactions was $1.54 billion, down 1.5% YoY, indicating a shift toward more affordable properties.

Foreign purchases accounted for 13.3% of total condo transactions, maintaining a stable share of the market.

Bangkok accounted for 38.7% of foreign property purchases (4,269 units, up 6.2% YoY).

Chonburi (Pattaya) ranked second, with 3,976 transactions (36% of total foreign purchases), although this was an 11% decline from the previous year.
Other key foreign markets: Phuket (748 transactions), Chiang Mai (698), and Samut Prakan (533).

Chinese buyers led the market, accounting for 39.7% of total foreign transactions, followed by Myanmar (9.5%), Russia (7.2%), and Taiwan (5.5%).

Legal Changes for Foreign Property Ownership

With foreign demand helping support the housing market amid weak domestic sales, the Thai government is reconsidering previously rejected proposals to relax ownership rules for non-residents. The Ministry of Interior is evaluating:
- Extending foreign property ownership rights from 50 to 99 years
- Raising the foreign ownership quota in condominiums from 49% to 75%

Analysts at KKP Bank predict that if the government implements effective stimulus measures, including tax reductions and mortgage incentives, residential sales could increase in 2025.

However, potential risks remain, including high household debt, tight lending policies, and geopolitical uncertainties, particularly regarding China’s economic recovery and its impact on Chinese buyers' purchasing power.

Real Estate Market Forecast for 2025

Thailand’s real estate sector faces mixed signals heading into 2025:

- Prices will likely continue rising, though at a slower pace
- Foreign demand remains stable, especially among Chinese buyers
- The government may introduce new policies to stimulate property sales
- High mortgage rejection rates (35% on average) could hinder domestic demand
- The rental market is booming, with an increase in demand for condominiums

With ongoing government support and a recovering economy, 2025 may mark a turning point for Thailand’s real estate sector