The Sky Series at Sri Panwa Phuket sits on the final two-rai plot within the development, with only two units remaining, priced from 200 million baht.

The luxury segment is the lone bright spot in the Thai property market, driven by foreign demand as local buyers continue to wait for the government to revive the economy, such as through the proposed Kra Canal project, according to SET-listed developer Charn Issara Development.

Chief executive Songkran Issara said one of the fastest ways to resuscitate economic sentiment, which has remained subdued for two years, is fresh, forward-looking narratives to attract investment, such as the Land Bridge project.

"Although this initiative may take up to a decade, it represents new hope and could generate fresh momentum for the economy," he said.

"Thai GDP growth has been minimal for the past two years, affecting many sectors."

Mr Songkran said digging a canal across the Kra Isthmus would not necessarily require government funding, as the project could be offered under a concession model to attract private investment, particularly from countries poised to benefit from connecting the Gulf of Thailand to the Andaman Sea, such as China.

Beyond the economic advantages of establishing a new port, the project would also carry significant geopolitical value, positioning Thailand as a strategic maritime hub in the region, he said.

"Thailand needs a new story to revive economic sentiment and stimulate home-buying power," said Mr Songkran.

"The second half of the year is likely to be more difficult than the first, as there are multiple uncertainties related to US policy and domestic political instability."

Without an economic recovery, he said the Thai property market cannot rely on local demand, particularly as middle- to lower-income segments continue to face mounting household debt.

In addition, housing demand is shrinking as the workforce decreases and the population shifts to an older demographic, said Mr Songkran.

"These factors lowered purchasing power across nearly all segments," he said. "The luxury segment may be less affected than others as foreign demand in this segment remains strong, particularly in Phuket."

Earlier this year, Charn Issara sold a unit at The Sky Series, the final development at Sri Panwa Phuket.

Launched in late 2023, the project comprises four pool villas priced from 200 million baht, with two units still available.

By the end of this year, the company plans to launch a new luxury residential project, Issara Boundary, on a 40-rai plot along the Motorway-Rama IX Road in the Krungthep Kreetha area, with units starting from 80 million baht.

"Amid an extremely sluggish market, developers must conserve cash, liquidate inventory, cut costs, and be highly selective with new launches," said Mr Songkran.

"The luxury segment stands the best chance to weather the downturn."