When land prices in Bangkok stop rising after decades of double-digit growth, the change says something important about Thailand’s property cycle. The question for Phuket property buyers and investors is whether the same forces are at work in resort markets, and what happens when developer demand cools.
According to Cushman & Wakefield Thailand, asking prices for land in Greater Bangkok have stagnated in 2025, with some sites now facing buyer offers up to 40% below asking price. The shift is driven by a sharp contraction in Bangkok’s condo market, where weak purchasing power, high mortgage rejection rates and elevated inventory have made developers far more cautious.
What changed in Bangkok
For decades, land prices in Bangkok’s central business district and surrounding areas rose consistently, largely driven by fierce competition among condo developers racing to acquire sites. That competition pushed prices steadily higher, often by double digits each year.
The peak effectively ended during the pandemic, according to Warat Sirisukdanukul, senior manager for capital markets and investment at Cushman & Wakefield Thailand. The market has since entered what he describes as a more subdued phase.
Land along Sukhumvit Road between the Bang Chak and Udom Suk skytrain stations illustrates the gap. Asking prices remain at 900,000 to 1 million baht per square wah, well above current transaction levels. Before the pandemic, transactions in the area typically concluded at 600,000 to 700,000 baht per square wah. The last deals at 700,000 baht per square wah were recorded in 2017-18, during the peak of Bangkok’s condo boom.
Today, developers are making counter-offers of only 500,000 to 600,000 baht per square wah — discounts of up to 40% from asking prices. Despite those offers, transactions have yet to materialise because landowners are not under financial pressure and have little incentive to sell at those levels.
Why the condo market stalled
The condo market downturn is driven by three factors cited in the report: economic weakness, weak purchasing power and high mortgage rejection rates. Developers are also sitting on elevated inventory, which makes new land acquisitions far less urgent.
The result is a standoff. Landowners remain unwilling to accept offers well below their expectations. Developers are unwilling to pay pre-pandemic prices when demand is uncertain and financing is harder to secure.
The widening gap between asking and selling prices in prime Bangkok locations signals that land values are no longer on an upward trajectory, according to Warat. Landowners who need to sell are likely to accept prices well below their expectations.
What Phuket property buyers should understand
Phuket operates in a different market. Demand is driven by foreign buyers, lifestyle investment, tourism-linked rental income and villa sales rather than Bangkok-style urban condo towers. The financing structure, buyer profile and product type are not the same.
But the Bangkok slowdown still matters for three reasons.
First, Thai developers active in Phuket often rely on Bangkok condo sales to fund expansion into resort markets. If Bangkok cash flow slows, Phuket project launches may slow with it.
Second, land price expectations in Phuket are also shaped by years of steady appreciation. If landowners in Bangkok are now facing a buyer’s market, the psychology may eventually reach Phuket, especially in less prime locations or areas where villa inventory has risen.
Third, the report highlights a shift in developer caution. When developers pull back from land acquisition due to weak demand and financing constraints, the change affects all markets where those developers operate, including Phuket.
The question is whether Phuket’s foreign buyer base, tourism demand and rental performance provide enough insulation, or whether broader Thai economic weakness and tighter financing eventually affect villa and land sales in secondary Phuket locations.
The leasing strategy landowners are considering
Rather than selling in a buyer’s market, Cushman & Wakefield Thailand is advising Bangkok landowners to consider long-term leasehold agreements instead. The strategy allows owners to avoid selling at discounted prices while generating stable rental income and retaining ownership until market conditions improve.
Converting vacant land into long-term leasehold agreements of 10 to 30 years also reduces land and building tax liability, as leased sites are no longer classified as idle land.
According to Warat, potential tenants are mainly hotel developers, supported by continued growth in Thailand’s tourism sector. Investors include not only Thai developers but also buyers from China, Japan and Europe, either developing projects independently or through joint ventures.
In Phuket, long-term leasehold structures are already common for foreign buyers purchasing land through Thai entities. The Bangkok shift toward leasing as a strategy for landowners facing weak sales demand may accelerate that trend in Phuket as well, especially if villa developers become more cautious about land acquisition.
What remains uncertain
The report does not specify how long the standoff between landowners and developers may last, or at what price level transactions will eventually resume. It also does not address whether the same dynamic is already present in Phuket or other Thai resort markets.
What is clear is that land price appreciation driven by developer competition is no longer guaranteed in Bangkok, and that developers are now negotiating aggressively from a position of greater caution.
For Phuket property buyers, the detail worth watching is whether developer caution, weaker domestic purchasing power and tighter financing begin to affect land prices, project launches or villa inventory levels in Phuket’s secondary locations over the next 12 to 18 months.
Frequently Asked Questions
Does the Bangkok land price drop affect Phuket property?
Not directly. Phuket’s market is driven by foreign buyers, tourism demand and villa sales rather than urban condo development. However, if Thai developers rely on Bangkok sales to fund Phuket projects, a Bangkok slowdown may reduce new project launches in Phuket.
Why are Bangkok developers offering 40% below asking price?
Weak purchasing power, high mortgage rejection rates and elevated condo inventory have made developers far more cautious. They are negotiating aggressively because they no longer face fierce competition for land and are uncertain about demand.
Are landowners accepting the lower offers?
Not yet. According to the report, landowners are not under financial pressure and remain unwilling to accept offers 40% below asking price. Transactions have stalled as a result.
What is the leasing strategy mentioned in the report?
Rather than selling at discounted prices, landowners are being advised to lease land on a long-term basis to hotel developers. This generates rental income, reduces tax liability and allows owners to retain the asset until market conditions improve.
Could Phuket land prices face similar pressure?
It depends on whether developer caution, weaker domestic demand and tighter financing begin to affect Phuket’s villa market. Foreign buyer demand and tourism-linked rental income may provide insulation, but secondary locations with rising inventory could face slower sales and softer land prices.
Sources
- Bangkok Post — Weak condo market crushes land prices — link
