Residential market continues in a stable but low-growth environment

• Luxury condominium transactions continued steadily during the quarter, though the market has yet to fully recover. Buyers remained cautious amid macroeconomic volatility, while easing interest rates supported competitive promotions and improved purchasing decisions.
• Prime apartments remained strong in Q2 2026, supported by expatriates and international long-term renters. Vacancy rate maintained at around 4.1%. Central East continued to record lower vacancy rates than Central Bangkok despite its larger stocks.

Moderate market recovery shapes selective approach to new residential development

• Luxury condominium stock rose to 74,922 units after five projects were completed. Via 34 launched as a ready-to-move-in low-rise project, allowing buyers to inspect completed units while helping developers streamline handovers and reduce post-completion costs.
• Developers have prioritised liquidity preservation through a more selective approach to new land acquisitions. Approximately 1,900 units are currently in the pipeline (around 3% of existing stock) and are scheduled for completion by 2029.

Both luxury condominium and prime apartment rentals see stable rental performance

• Capital values in the CBA continued to trend downward. The softening was largely attributed to ongoing price adjustments in the luxury segment amid cautious buyer sentiment, influenced by geopolitical uncertainties and weakening domestic economic conditions.
• Rental market remained less affected by economic conditions. Gross rents in the CBA stayed stable, as new supply during the quarter expanded leasing options and limited rental growth. Yield saw modest improvement to 5.4%.

Outlook: Upcoming branded residences are expected to support market activity

• No additional completions are expected by year-end 2026. However, branded residences are expected to play an increasingly important role in the luxury market, supported by upcoming launches from internationally recognised brands, including Upper House and Capella.
• The rental market is expected to remain moderate, with rents projected to stay flat y-o-y amid more than 1,000 incoming units. Competitive conditions and high existing inventory are expected to pressure capital values, with yields rising to 5.4% in the near term.