A condominium model is displayed at a house and condo fair in Bangkok in March this year. (Photo: Somchai Poomlard)

Some new condominiums launched recently in Bangkok have been priced at levels similar to those seen a decade ago, as developers settle for slim margins to draw buyers with limited purchasing power, according to the Thai Condominium Association.

Some developers resumed launches in the third quarter of this year after freezing new condo projects during the first six months, said Prasert Taedullayasatit, the association’s president.

“The issue is their selling prices are comparable to those a decade ago,” he said. “Developers who once enjoyed margins of up to 30% have now cut them by half just to secure sales.”

Mr Prasert said units in a recently launched project in the Rama IV area of the capital were priced at 120,000 baht per square metre, compared with more than 150,000 baht for nearby buildings launched earlier.

Meanwhile, a newly launched project in the Tha Phra area was being offered for 60,000 to 70,000 baht per sq m, well below the current market average of more than 100,000 baht, he said.

“These new prices are likely to attract investment buyers seeking capital gains upon project completion in the next few years, as well as those willing to wait before moving in,” said Mr Prasert.

“For end-users, many ready-to-move-in units are available, which may be priced higher than new projects, but come without the wait.”

According to the property consultancy Knight Frank Thailand, average asking prices for condos in Bangkok remained relatively stable in the second quarter, reflecting a market that has yet to fully recover, with price competition persisting across many locations.

In the central business district, the average asking price stood at 239,475 baht per sq m, unchanged from the previous quarter but down from 249,744 baht in the second quarter of 2024.

Within this area, Sukhumvit recorded a slight uptick, while Sathon-Silom remained flat, reflecting sluggish demand in the high-end segment that continued to await new positive drivers.

In city fringe areas, the average asking price dropped to 126,897 baht per sq m, compared with 128,049 baht in the first quarter of 2025 and 127,421 baht in the second quarter of 2024.

The decline was driven by subdued purchasing power and heavy competition amid high unsold inventory. Developers were compelled to adjust pricing to stimulate demand.

In Bangkok’s suburbs, the average asking price fell further to 72,193 baht per sq m, down from 72,776 baht in the previous quarter, but up from 69,241 baht a year earlier, continuing its downward trend as developers sought to attract real-demand buyers and accelerate the clearance of unsold units.

“Stable or falling prices highlight a market still highly sensitive to external pressures, with competition focused on value rather than pushing prices higher,” said Frank Khan, partner and head of residential at Knight Frank Thailand. (Story continues below)

Government measures

Mr Khan said the condo market continues to face headwinds from weak purchasing power and broader economic pressures.

“Both developers and buyers lack confidence in the economy,” he said. “The world is full of wars and negative news, so people are reluctant to commit. They are waiting for stronger economic conditions and political stability, which are critical factors.”

He warned that if the government fails to make the right decisions regarding real estate, economic growth could shrink by as much as 25%, given the sector’s significant contribution to GDP.

Mr Khan also highlighted the conservative stance of Thai commercial banks in approving mortgages, which has further constrained housing demand.

“These two challenges will weigh on the residential market for the rest of the year, keeping sentiment similar to the first half, which has already hit the bottom line,” he said.

Mr Khan said the market could see a gradual recovery toward the end of the year, particularly if government support measures are introduced and interest rates become more accommodative, which would help restore confidence and encourage buying decisions.

“Many developers are waiting for the right time in the economy to launch their projects. The projects are ready, the budgets are set, and teaser ads are already being used to test market sentiment,” he added.