Thailand Real Estate – H1 2025 Market Overview

Question: So, what’s really happening in Thailand’s real estate market? Are we seeing a rebound, a retreat, or something in between?

Answer: The truth lies somewhere in the middle. The first half of 2025 revealed a market that’s steady but selective. Prime and luxury properties continue to attract confident buyers, especially in resort destinations like Phuket and Hua Hin, and Bangkok’s best addresses. Meanwhile, the mid-market faces headwinds from tighter lending conditions and ongoing affordability pressures. Temporary policy support, such as eased loan-to-value (LTV) rules, along with resilient tourism are creating pockets of opportunity, but success now depends on choosing the right neighbourhoods and product types.

National Snapshot – What Drove the Market in H1 2025

Market Sentiment and Transactions

Thailand’s residential market showed quiet resilience through H1, neither surging nor stalling, but uneven across price points and property types. 

According to the Real Estate Information Centre (REIC), housing transfers in Q2 rose 18.5% by units and 15.7% by value compared with Q1, led by low-rise homes and a stronger second-hand segment. While transaction volumes remain significantly below pre-pandemic peaks, total 2025 activity is expected to come close to last year's levels – signalling steady underlying demand.

Prices & Buyer Behaviour

Prices moved modestly higher nationwide, according to Global Property Guide, pointing to slight year-on-year gains through mid-2025.

The story, however, is uneven. Lazudi data shows a stronger first quarter followed by a slower April-June period. A 24% rise in rental enquiries suggests would-be buyers are opting to rent and delay purchases, awaiting clearer economic signals.

A strong baht, a drop in foreign buyers (particularly from China), and short-term disruptions from the Myanmar earthquake and political uncertainty all tempered momentum. Household debt remains amongst the highest globally, further constraining mid-market mortgage demand.

Policy & Financial Supports

The Bank of Thailand’s temporary easing of LTV ratios and reduced transfer and mortgage fees (0.01% on homes up to THB 7 million) improved short-term liquidity. Yet analysts view these as transitory supports, suggesting that underlying fundamentals like income growth, employment, and tourism recovery remain the real drivers to watch in H2.

Supply & New Launches

Supply-side caution also defined H1. New condo launches slowed sharply, with Knight Frank reporting Bangkok’s lowest quarterly new-build count in 15 years. Developers in most destinations have adopted a ‘wait-and-see’ stance, prioritising the clearance of existing stock over expansion. This approach is helping to protect pricing as unsold inventory and weak mid-market demand persist. 

With this national picture in view, it’s clear that Thailand’s housing market in H1 2025 was marked by measured confidence rather than broad recovery. Each region tells its own story, from Bangkok’s cautious stability to renewed confidence in resort markets like Pattaya, Phuket, Hua Hin, and Samui. 

Regional Performance & Opportunities

Bangkok - Cautious but Steady

Bangkok’s residential market in the first half of 2025 reflected measured activity amid cautious sentiment. Underlying demand held, but both developers and buyers focused tightly on prime and mid-range projects in established districts.

• Condominium Slowdown: Major developers postponed new launches, leading to the lowest new condo supply in over a decade. High unsold inventory and subdued absorption rates kept this segment subdued.

• Resilient Home Segment: Demand for detached and townhouse units in the THB 5-10 million range held firm, driven by domestic buyers and steady bank lending, partly reflecting renewed interest in low-rise living following the March 2025 earthquake.

• Wealthy Buyers: Activity for properties above THB 20 million eased, as affluent buyers awaited greater economic and political clarity.

• Shifting Foreign Demand: Foreign condo transfers increased overall, though buyer profiles shifted; Myanmar nationals gained ground while Chinese demand declined.

• Resale Market: The secondary market and select NPL-backed projects gained traction, offering better value and immediate availability compared with new-build units.

• Rental Activity: This market strengthened, driven by returning expats, professionals, and would-be buyers, seeking well-located, managed projects.

Investor Takeaway: 

Condos with transport access, in prime districts such as Sukhumvit, Phrom Phong, Lumphini, and Rama 9 remain top performers. Riverside developments continue to attract lifestyle and long-stay buyers. See Lazudi’s Q1 Bangkok Market Report for detailed district trends. Find Bangkok properties for sale.

Pattaya – Healthy Momentum & Poised for Growth

• Property Types: Luxury beachfront properties have performed particularly well, while mid-range condos remain an accessible entry point for investors. 

• New Condominiums: CBRE reports a moderate resurgence in H1 2025, with 10 new projects launched, totalling 3.377 units, mostly in the mid-range THB 2-4 million band.

• Tourism: Chonburi welcomed 13.7 million visitors (+3.4% YoY), driven by domestic visitors (+10.6%), which now account for around 61% of arrivals. This steady tourism, coupled with strong weekend demand, continues to underpin the rental market, where yields typically range from 5% - 10%.

• Eastern Economic Corridor (EEC): Thailand’s flagship development zone is driving investment in high-tech manufacturing, innovation and logistics. The upgrading of the U-Tapao International Airport and building of high-speed rail links are set to boost connectivity, employment and longer term demand for residential housing. 

Investor Takeaway

Target well-located beachfront or city-centre condos with resort-style amenities and properties within the EEC zone or near international schools. Properties for sale in Pattaya.

Phuket - Selective Resurgence

Phuket H1 2025 property market reflected a careful balance of opportunity and caution. The island’s recovery continues to rely on tourism and sustained foreign interest, yet new supply pressures remain. 

• Condominiums: CBRE reports 3,711 new units launched, mostly along the South and South West coasts where land is more available and pricing more attractive. Launches fell 37.5% HoH, but sales rose 48%, underscoring selective buyer confidence. However, REIC warns of oversupply as over 10,000 units, valued around THB 77 billion, are expected by 2026.

• Villas: New launches declined 29.4% HoH, yet sales rose by 23.8% in the same period, showing continued demand for lifestyle-driven properties. However, YoY shows a 21.9% decrease in sales. 

• Secondhand Market: Resale activity strengthened, capturing 63% of the market share, as buyers favoured ready-to-move-in homes and discounted pricing.

Investor Takeaway:

Prioritise limited-supply beachfront and resort enclaves offering solid rental yields and immediate availability. Find properties for sale in Phuket.

Chiang Mai – Market Softens, Villas Stand Out

• Project Launches: According to The Nation Thailand, in H1 2025, only 284 units were launched, a 66% drop compared to last year, with a decline in both condos and homes.

• Unsold stock climbed 4.3%, and absorption rates fell to around 1.6%, implying it could take about 57 months to clear existing inventory.

• Villa sales: Although supply was small, villa transactions increased around 700% showing a niche demand. 

• Buyers: Chinese demand cooled, while interest from Myanmar and the US rose aided by improved travel links, migration and the new US consulate staffing in Chiang Mai.

Investor Takeaway:

Focus on well-located villas and boutique developments that appeal to lifestyle buyers and long-stay renters. View real estate in Chiang Mai.

Hua Hin – Steady Market & Affordable

• Lifestyle & Affordability: Hua Hin’s family-friendly beaches, world-class golf courses, and vibrant yet laid-back atmosphere offer high quality of life at more affordable prices than some other Thai coastal destinations.

• Rental Demand: Both short-term and long-term rentals, particularly for luxury villas and conveniently located condos, are in demand, leading to rental yields of approximately 5% to 7%.

• Buyers: A growing number of international buyers, including retirees, digital nomads, and families, are drawn to the lifestyle benefits and investment potential.

Investor Takeaway:

The growing popularity of holiday rentals through platforms like Lazudi Holiday Homes adds income potential, particularly for well-managed pool villas with easy access to golf courses and the beach. Browse homes for sale in Hua Hin.

Koh Samui - Evolving Momentum

• Product Shift: The island is seeing a marked shift from pure villa development toward condominiums and resort-style complexes, especially in prime coastal and resort zones.

• Villas: Rising villa supply is softening some rental yields. 

• Foreign Demand Lead: Foreign buyers remain dominant, particularly for lifestyle and vacation home assets, as the island continues to attract retirees, digital nomads and professionals.

• Tourism: Air arrivals grew around 9% in early 2025, helping underpin rental demand and occupancy across resorts and residential rentals.

Investor Takeaway

Look for well-positioned condos and mixed developments in Chaweng, Bophut, Lamai, or other tourist hotspots and projects offering turnkey management and appeal to long-stay foreign renters. Check out Koh Samui properties for sale.

Thailand Real Estate Outlook - H2 2025

Overall, Thailand’s property market remains stable yet highly segmented. Prime and resort destinations continue to attract confident capital, while the mid-market awaits stronger tailwinds. For investors, success will hinge on location, timing, and alignment with lifestyle and tourism-led demand.

Looking to explore opportunities across Thailand?

Browse Lazudi’s full collection of Thailand properties for sale and connect with our local experts for personalised guidance.

Market insights and data referenced from REIC, CBRE, Knight Frank, Global Property Guide, C9 Hotelworks, Remax, The Bangkok Post and The Nation Thailand, together with Lazudi’s own market observations for H1 2025.