Knight Frank Chartered (Thailand) Co Ltd

Developers Shift Focus to the Mass Market as New Condominium Sales Rate Falls to 24.3%

Bangkok, June 2026 – Knight Frank Thailand reports no new condominium launches in Bangkok’s CBD during Q1 2026, while more than 68% of new supply was priced below THB 80,000 per sq m, reflecting a strategic shift towards segments supported by genuine end-user demand.

Bangkok’s condominium market in Q1 2026 reflected a notable shift in developer strategy, with many developers increasingly focusing on owner-occupier demand as newly launched projects recorded a sales rate of only 24.3%, down from 43.8% in the previous quarter. The decline highlights a more cautious purchasing environment, with buyers taking longer to make decisions amid ongoing economic uncertainty.

According to Knight Frank Thailand, approximately 6,174 condominium units were launched in Bangkok during the first quarter of 2026. Notably, there were no new project launches within the Central Business District (CBD), while new supply was concentrated in City Fringe locations, accounting for 58% of launches, and Bangkok Suburbs, accounting for the remaining 42%.

In terms of pricing, more than 68% of newly launched units were priced below THB 80,000 per sq m, reflecting developers’ increasing focus on the mid- to lower-priced market segments. The majority of new projects targeted buyers within the THB 1.5–3 million price range, which continues to represent the market’s largest and most active pool of real demand.

Ms. Potjaman Vorakitpokathorn, Partner – Head of Project Marketing at Knight Frank Thailand, said: “The latest market data suggests that underlying housing demand remains present. However, buyers have become more selective and cautious in their purchasing decisions, resulting in a lower sales rate for newly launched projects. In response, developers are increasingly focusing on segments supported by genuine end-user demand, particularly within affordable and accessible price ranges.”

Despite the decline in new project sales rates, condominium transfer volumes in Bangkok and its surrounding areas increased by approximately 12.7% year-on-year, supported by government stimulus measures such as the relaxation of Loan-to-Value (LTV) regulations and reduced transfer fees. The increase suggests that housing demand remains active, although the recovery is still uneven across different market segments.

The market continues to face pressure from a substantial level of unsold inventory, estimated at approximately 350,000 units. With annual condominium transfers averaging around 60,000 units per year, it could take approximately five to six years to absorb the existing overhang, assuming no significant increase in future supply.

“In the next one to two years, developers are expected to remain highly selective in launching new projects, focusing on locations and price segments with clearly identifiable demand. At the same time, buyers are likely to maintain strong negotiating power in terms of pricing, incentives, and payment conditions as competition within the market remains intense,” Ms. Potjaman added.

Knight Frank Thailand believes the current market reflects a broader shift away from competing in the upper-end segment toward developments that align more closely with actual purchasing power. Developers are increasingly prioritising risk management, liquidity preservation, and market-driven product strategies over aggressive expansion, reflecting the realities of today’s condominium market.