Swift call for government support as prime condo market stagnates

• Bangkok’s prime condominium market remained stagnant, with the lowest quarterly absorption since early 2022. A full recovery was expected to be gradual. Despite further interest rate cuts, the market still anticipated government stimulus to revitalise the sector.
• Approximately one-third of prime apartments reached full occupancy during the quarter. The CBA’s appeal as a business hub drove continued demand, primarily from expatriates. As a result, the prime vacancy rate fell by 5 bps q-o-q to 4.7%.

New launches focus on all-penthouse development

• The completion of Scope Thonglor added 18 units to the prime condominium market, bringing the total inventory to 72,500 units. Two Super Premium projects were launched in the Central East submarket, both focusing on an all-penthouse concept offering large unit sizes.
• Prime apartments saw the addition of SPR Residence Sukhumvit 36 (16 units) in the Central East. The submarket remained dominant as the Sukhumvit area was known as a desired location for residences among expatriates, holding 75.7% of the total inventory.

Rents soar as tenants prioritise flexibility and affordability

• Subdued domestic demand kept capital values flat in Q1 2025, with a marginal decline of 0.1% q-o-q. Amid market uncertainty, cautious homebuyers in turn favoured rentals due to unaffordability and relocation flexibility.
• Condominium gross rents rose for the 12th consecutive quarter, up by 2.0% q-o-q to THB 728 per sqm per month. A new trend saw retirees choosing Bangkok alongside tourist destinations. As rental market strengthened, market yields slightly increased to 5.0%.

Outlook: Condominium market to face a short-term earthquake impact

• By the end of 2025, an additional 3,000 units are slated for completion. While LTV relaxation in Q2 2025 is expected to boost the market, the recent earthquake may cause a short-term dip in demand as potential buyers delay decisions.
• Capital value growth is likely to slow down as many buildings require repairs from damage, potentially leading to a slight price reduction. The rental market, on the other hand, is likely to stabilise due to sustained demand.