BANGKOK, Thailand – Thailand’s property market is heading into the final quarter of 2026 under pressure from weak purchasing power and flooding concerns, even as industrial estates continue to attract strong investment interest. The Board of Investment approved 1,300 projects worth 1.31 trillion baht in the first half of the year, up 45%, reflecting strong investment activity, particularly in data centres and digital businesses.
Industrial estates tighten while factories and warehouses remain stable
Industrial estates continued to attract demand. In the third quarter of 2026, Thailand had 222,388 rai of industrial estate land, with the vacancy rate falling to 5.49%. Land prices rose 3% to an average of 8.65 million baht per rai, while 20,286 rai remained under development.
Demand is particularly strong in Chachoengsao, Chonburi and Rayong. Rayong recorded a vacancy rate of just 2.72%, alongside the highest rents, reflecting increasingly limited available space.
By comparison, Bang Na and Samut Prakan still have available land. The average market price stood at 6.5 million baht per rai, although a large wave of new supply could push prices down to around 5.4 million baht per rai.
Factory and warehouse markets remained stable, with no new supply entering the market. Thailand had 3.42 million square metres of factory space, with average rents of 196 baht per square metre per month. Warehouse space totalled 6.05 million square metres, with average rents of 160 baht per square metre per month. Foreign manufacturers relocating production, expanding logistics operations and the growth of e-commerce are expected to support future demand.
Office market faces oversupply concerns
Thailand’s office market recorded no new office completions for two consecutive quarters, leaving total supply at 4.83 million square metres. In the central business district, available space increased to 23.5%, up from 22.8% in the previous quarter, as tenants reduced the amount of space they rented. Average rents fell by 2 baht to 941 baht per square metre per month.
Building owners are increasingly offering incentives, including longer rent-free periods and contributions towards office fit-outs. In Sathorn, several buildings offering fully fitted offices have reportedly achieved rents 200–300 baht per square metre per month above the market level.
Ratchada–Rama 9 remains highly competitive, with occupancy rates of 75–80%. Bang Na is also under pressure, with occupancy at around 70% and average rents of only 300 baht per square metre per month. Future demand there will partly depend on whether industrial investment generates additional demand for office space.
Bangkok condominium market carries 65,300 unsold units
The condominium market recorded 4,876 newly launched units in the third quarter, bringing the total for the first nine months of 2026 to 14,377 units.
Flooding prompted some developers to postpone launches until the fourth quarter. Full-year launches are expected to reach 16,000–17,000 units, broadly in line with 2025, with new projects continuing to favour locations near mass-transit lines.
Bangkok had approximately 65,300 unsold condominium units worth a combined 370 billion baht. The largest share was priced below 3 million baht, or less than 100,000 baht per square metre, followed by units priced between 100,001 and 150,000 baht per square metre.
However, mortgage rejection rates remain high at around 40%. Some developers are responding by offering rental arrangements that allow buyers to pursue financing when their financial circumstances improve.
Flood risk could reshape housing decisions
Flooding could make location-related risk a more important factor in home-buying decisions. However, property prices in flood-prone areas are not expected to fall significantly, and a repeat of the strong second-home buying activity seen after the 2011 floods appears unlikely.
Household purchasing power, economic uncertainty and strict bank lending criteria continue to limit demand.
Instead, some high-net-worth buyers may add condominiums to their portfolios because such properties can offer an alternative to landed homes exposed to flood damage. Luxury property in Phuket is also attracting interest from Thai and foreign buyers seeking a lifestyle alternative while retaining their primary homes in Bangkok.
The outlook points to a divided market: industrial estates continue to benefit from investment and limited available land, while offices and condominiums face pressure from supply, affordability and cautious buyers.
