PATTAYA, Thailand – Thailand’s property sector is facing its weakest performance in two decades, forcing developers to scale back expansion plans, cut project sizes, and focus on clearing unsold inventory, while financially stronger players move aggressively to acquire discounted land and distressed assets. Industry veteran Issara Boonyoung, honorary president of the Housing Business Association and managing director of Kanda Property, said the overall real estate market in 2026 continues to slow as economic conditions remain uncertain.
Developers, he noted, are becoming increasingly cautious with new investments, reducing land acquisition budgets and delaying new project launches. Many are prioritizing inventory clearance and developing on existing land banks while scaling down project sizes in response to weaker demand. Data from Thailand’s Real Estate Information Center (REIC) shows that residential launches in Bangkok and surrounding areas in the first quarter of 2026 fell 31.1 percent, while total project value declined 10.4 percent. Although transfer volumes rose 10.5 percent, total transaction value still dropped 2.8 percent, reflecting continued price pressure in the market.
The downturn has particularly affected mid-sized developers carrying corporate bond debt, forcing them to sell assets including land, hotels, and Environmental Impact Assessment (EIA)-approved condominium projects in locations such as Bangkok, Sri Racha, and Phuket. These sales are being used to generate liquidity and stabilize balance sheets while waiting for market recovery. Analysts say the trend reflects a typical cycle in downturn conditions, where weaker players exit or restructure while stronger firms consolidate assets. Some notable transactions include asset disposals by listed developers such as property firms selling office buildings and riverside land parcels, as well as equity sales in condominium projects aimed at raising cash flow and reducing debt obligations.
Despite the downturn, major listed developers are actively acquiring land and distressed projects at lower prices. AssetWise CEO said reduced new supply in several locations has created opportunities, particularly in Bangkok and Phuket, where demand remains resilient. The company has already deployed its 2026 land acquisition budget, focusing on smaller-scale developments that better match current demand conditions. The firm is also increasingly acquiring completed or near-ready projects from other developers, especially those with approved EIA documentation, allowing faster redevelopment and shorter time to market.
Similarly, Sansiri has increased its 2026 land acquisition budget from 2 billion baht to 3 billion baht, citing strong inflows of attractive land opportunities across Bangkok, the suburbs, and Phuket. The company said it prioritizes ready-to-develop land to accelerate revenue generation.
Sansiri is also actively targeting specific Bangkok zones, including Ari, Rama IV, and Phetchaburi corridors, as well as larger suburban plots suitable for housing estates in Bang Na, Srinakarin, and western Bangkok corridors.
Supalai executives said the current market represents one of the most challenging environments in over 20 years, but also a period where financially strong developers can strategically expand their land banks. The company has set aside an 8 billion baht land acquisition budget for the year, reflecting confidence in long-term recovery despite short-term weakness. AP Thailand is also among the most aggressive buyers, reportedly allocating up to 15 billion baht in land purchases, marking a 22 percent increase from the previous year and the highest level among major developers. Other listed firms, including Lalin Property, Pruksa Holding, Land and Houses, and Frasers Property Thailand, are also maintaining land acquisition budgets ranging from hundreds of millions to several billion baht.
Industry observers say the current environment has clearly shifted bargaining power toward buyers, with land prices in some locations falling by 30–50 percent depending on urgency and location quality. Real estate analysts note that only a handful of large developers currently have sufficient financial strength to actively acquire land at scale, leading to increasing market concentration among major players. The ongoing consolidation is expected to reshape Thailand’s property landscape, with weaker developers exiting through asset sales while stronger firms expand their pipelines in anticipation of future recovery.
