Promotional discounts and wellness features drive condo absorption

• Market recovery persisted in Q4, with 536 condo units absorbed, despite overall absorption declining 19% q-o-q. Projects offering steep discounts primarily drove absorption. Buyers continued to favour developments featuring wellness amenities and spacious layouts.
• Prime apartment demand in Bangkok’s CBA remained firm, with 47 units absorbed and annual take-up reaching a three-year high. Vacancy declined to 3.1%, the lowest in nearly three decades, driven by corporate and long-stay tenants, coupled with limited new supply.

All new luxury launches concentrated in early-Sukhumvit area

• The market recorded 612-unit completions from Culture Chula in Q4, raising total luxury condo supply to 73,700 units. Developers maintained focus on larger living spaces, with two-bedroom units the most prevalent entry option among the two newly launched projects.
• The final quarter closed without new prime apartment completions in the CBA, keeping total stock unchanged at 4,700 units. Following a period of heightened activity earlier in the year, the market has shifted into a phase of stability, with no new pipeline scheduled.

Luxury residential capital values remain stable q-o-q while rents register y-o-y growth

• The impact of promotional sales from first-hand units has constrained price appreciation in the resale market. Luxury condominium capital values rose 0.6% q-o-q in Q4 2025, yet the annual increase remained minimal at 0.1%, keeping overall growth muted.
• Amid lingering caution in the sales market, many potential buyers favoured rental flexibility to reduce long-term financial obligations. Rental rates remained unchanged q-o-q, therefore luxury condo yields slipped by 3 bps to 5.3%.

Outlook: Luxury residential market to see a gradual recovery in 2026 as buyers show greater selectivity

• End-user demand is set to drive the luxury residential market as purchasing power gradually recovers. Developers remain cautious with new launches. By 2026, approximately 1,600 units are expected to be completed, with presale rates averaging 70.2%.
• Subdued inflation and new supply temper rental growth, with rents anticipated to rise 2.9% y-o-y by end-2026. Capital values are set to rebound 3.1% y-o-y, while market yields will stabilise at 5.2%, reflecting firm pricing and steady rental performance.