Bangkok’s condominium market is splitting into two different stories. High-end projects in prime locations continue selling, particularly to foreign buyers seeking lifestyle properties and long-term holds. The broader mid-market, however, remains weighed down by weak purchasing power, tight mortgage approvals and unsold inventory.
The development response is worth noting. Major Bangkok developers are increasingly shifting capital toward Phuket and Pattaya, where tourism recovery and overseas buyer demand offer clearer growth prospects than the capital’s residential market.
Property consultancy Savills (Thailand) confirmed the trend in a recent market report, noting that many major developers are redirecting investment to resort markets where fundamentals are stronger.
What the Bangkok market shows
During the second quarter of 2026, only five new condo projects launched in Bangkok, totalling 2,260 units worth 15.6 billion baht. All were launched by just two major listed developers.
First-half launches increased 72.5% year-on-year to 12,248 units, but the rise came from a handful of large projects rather than broad-based market recovery. Savills expects total new condo launches across Bangkok to reach around 16,000 units this year, down approximately 6% from 2025 and still well below pre-pandemic levels.
Prapaporn Boonkajornkul, deputy managing director at Savills (Thailand), said Bangkok’s condo market is in a rebalancing phase as developers adopt a cautious approach amid weak purchasing power, stricter mortgage approvals and elevated development costs.
New project launches remain concentrated among large listed developers with stronger financial positions, while medium-sized and smaller firms continue prioritising liquidity management and inventory clearance over expansion.
The luxury exception
Luxury and super-luxury condos remain the strongest-performing segment in Bangkok. Penthouses and large units continue attracting wealthy owner-occupiers, long-term investors and selected foreign buyers, particularly in Sukhumvit, Thong Lor and Ekkamai.
CBRE Thailand reported a sharp increase in new condo launches in downtown Bangkok during the first half of 2026, with 2,380 units launched, up 207% year-on-year. The increase was driven largely by premium developments rather than a broad-based recovery.
Roongrat Veeraparkkaroon, managing director of CBRE Thailand, said buyers from the Middle East, Japan and Russia continued purchasing premium condos, primarily seeking lifestyle properties, second homes and long-term investment opportunities rather than speculative purchases.
Several luxury condo projects in Bangkok’s central business district attracted buyers who queued before official sales launches, underscoring consistent demand for scarce premium products.
The second half is expected to see new launches in downtown Bangkok dominated by branded residences developed in partnership with international hospitality operators. Developer confidence in the premium segment remains firm because wealthy buyers continue seeking high-quality projects in prime locations despite ongoing economic uncertainty.
Why Phuket looks different to developers
The shift toward Phuket reflects a practical calculation. Tourism recovery creates rental demand. Foreign buyers remain active. The luxury segment performs without requiring the same mortgage-dependent middle market that has stalled in Bangkok.
Phuket’s appeal to developers is straightforward: demand is more directly tied to tourism performance and foreign buyer activity than to domestic mortgage lending conditions or household debt levels.
While Bangkok’s mid-market faces structural pressure from weak purchasing power and strict lending standards, Phuket’s luxury and lifestyle-oriented market is less dependent on those factors. Buyers in Phuket more often purchase outright or with less leveraged financing, particularly foreign buyers acquiring second homes or investment properties.
The tourism recovery strengthens rental potential, which supports investor confidence. Long-stay visa schemes and Thailand’s positioning as a regional hub for digital nomads and retirees add further demand layers that Bangkok’s residential market does not offer.
What remains unclear in Bangkok
Bangkok’s mid-market remains under pressure. Many developers continue relying on discounts, promotional campaigns and additional incentives to accelerate sales of completed but unsold inventory and improve cash flow.
Savills said the extension of reduced transfer and mortgage registration fees will provide only limited support because the market’s primary constraints remain weak purchasing power, high household debt and strict lending standards.
Bangkok’s condominium market will remain a buyer’s market through the remainder of 2026, with developers focusing more on clearing inventory than introducing significant new supply.
The polarisation between luxury and mid-market is not expected to resolve quickly. Wealthy buyers remain relatively insulated from economic pressures, placing greater emphasis on product quality, privacy, architectural design and location than on price. Middle-income buyers face tighter credit conditions and weaker purchasing power, limiting demand for new mid-priced projects.
What this means for Phuket property
For Phuket, the capital reallocation by major Bangkok developers is likely to increase supply in the luxury and upper-mid segments over the next 18 to 24 months. Larger listed developers bring financial strength, international partnerships and branded residence models that have performed well in Bangkok’s premium market.
The shift also signals confidence in Phuket’s fundamentals. Developers are moving capital toward markets where demand is clearer and less dependent on domestic mortgage conditions.
For buyers and investors, the trend suggests continued development activity in Phuket’s luxury segment, particularly branded residences and projects near key tourism and infrastructure hubs. It also suggests that competition for prime land in established areas such as Laguna, Bang Tao, Kamala and areas near the new marina developments may increase.
For sellers, increased developer interest in Phuket may support land values in prime locations and create exit opportunities for owners of larger plots suitable for residential development.
Frequently Asked Questions
Why are Bangkok developers moving to Phuket?
Tourism recovery and foreign buyer demand in Phuket offer stronger growth prospects than Bangkok’s mid-market, which remains constrained by weak purchasing power, high household debt and strict mortgage lending. Phuket’s market is less dependent on domestic mortgage conditions and more directly tied to tourism performance and foreign investment.
Is Bangkok’s luxury condo market still performing?
Yes. Luxury and super-luxury condos in prime Bangkok locations continue attracting wealthy owner-occupiers and foreign buyers, particularly from the Middle East, Japan and Russia. Several luxury projects attracted queues before official sales launches, showing consistent demand for scarce premium products in areas such as Sukhumvit, Thong Lor and Ekkamai.
What does this mean for Phuket property supply?
The capital reallocation by major Bangkok developers is likely to increase supply in Phuket’s luxury and upper-mid segments over the next 18 to 24 months. Larger listed developers bring financial strength, international partnerships and branded residence models, which may increase competition for prime development land in established areas.
Will Bangkok’s mid-market recover soon?
Unlikely in the near term. Savills expects Bangkok’s condominium market to remain a buyer’s market through the remainder of 2026, with developers focusing more on clearing existing inventory than launching significant new supply. The extension of reduced transfer and mortgage fees will provide only limited support because weak purchasing power and strict lending remain the primary constraints.
What type of Phuket projects are developers likely to launch?
Based on Bangkok trends, expect branded residences developed in partnership with international hospitality operators, luxury condos in prime locations near beaches and marinas, and projects targeting foreign buyers seeking lifestyle properties, second homes and long-term investment rather than speculative purchases.
Sources
- Bangkok Post — Luxury condos withstand Bangkok’s wider slowdown — link
