Discounted units in mid-Sukhumvit continue to attract demand

• Demand has bottomed out and gradually recovered in Q1 2026, mainly due to price discounts on existing projects in Thonglor and Phrom Phong. In addition, foreign buyers showed strong interest in new launches, with some projects nearing their foreign quota.
• Prime apartment demand was maintained despite minor vacancies, partly due to shifting Japanese expatriate relocations as firms reconsider global activity. Vacancies remained low, rising slightly by 88 bps q-o-q, with the Central East seeing stronger occupancy.

New supply is concentrated among major developers

• Two luxury projects totalling 315 units were completed in the quarter, increasing total stock to 73,885 units. Two-bedroom units (60-100 sqm) gained strong interest from end buyers, as evidenced by robust uptake in recent launches.
• Developers have taken a cautious stance, prioritising areas with established demand and scaling back project launches scheduled for 2026. There is an increasing focus on major tourist hotspots, along with efforts to diversify into alternative sectors.

Inventory clearance pressures capital value growth while rental demand remains resilient

• The effort to clear inventory continued to pressure both the primary and resale condo markets, with capital values down 1.3% q-o-q, reflecting heightened competition and incentive-driven sales impacting pricing dynamics.
• Persisting market wariness supported demand in the rental market, as tenants were attracted by flexibility and fewer long-term commitments. CBA luxury condo rents rose 0.3% q-o-q and 5.1% y-o-y despite declining prices, pushing yields up slightly to 5.4% in Q1 2026.

Outlook: Incentives and new demand sources to shape market amid headwinds

• By 2026, about 1,000 units are expected to complete with presales nearing 84%. Uncertainty over the extension of government stimulus beyond its mid-2026 expiry may affect buyer sentiment. New opportunities from Middle Eastern buyers may arise amid regional conflict.
• Rental growth momentum is expected to moderate in 2026 with more luxury units available, easing to 2.4% y-o-y. Discounted prices on upcoming new completions will keep capital value growth minimal at 1.7% y-o-y. Market yields are forecast to hold at around 5.3%.