Thirty-percent discounts sound tempting, but Thailand’s smartest luxury property buyers are now asking a different question: will this home hold value in five years?
That shift is playing out across Bangkok’s luxury housing market, where some developers are slashing asking prices by as much as 20-30% to move inventory. Homes once marketed at 50 million baht now appear at 39 million.
But not every developer is joining the race to the bottom. SET-listed developer Sansiri has publicly refused to compete on price, arguing instead that buyers care more about long-term asset value than headline discounts. And so far, the strategy appears to be working.
What the Bangkok price war reveals
The discounting started late last year and intensified during the first half of 2025, according to Pakpring Karoon, deputy vice-president at Sansiri. The trigger was simple: more developers expanded into the luxury segment, crowding the market and increasing competitive pressure just as economic conditions slowed.
“We are not competing on price. We are competing on value,” Ms Pakpring said. “If everyone continues cutting prices, the market simply enters a race to the bottom.”
Competition has now intensified across almost every residential segment, with luxury housing among the hardest hit. Developers facing pressure to move units have turned to aggressive promotional pricing, creating a market environment where discount depth has become a key sales tool.
But the strategy carries risk. Deep discounts may move inventory, but they also reset buyer expectations, compress margins and potentially undermine long-term asset values across entire project portfolios.
Why some buyers are choosing value over discount
The counterargument to heavy discounting is straightforward: luxury buyers are not purely price-sensitive. They evaluate projects based on design quality, after-sales service, community standards and the developer’s track record of maintaining property values over time.
According to Ms Pakpring, Sansiri’s premium projects on Borommaratchachonnani Road and in the Krungthep Kreetha area have achieved strong sales without price reductions. Narinsiri Krungthep Kreetha, with homes priced around 50 million baht, is nearly sold out—an outcome Ms Pakpring described as surprising given the economic environment.
“Luxury buyers today are no longer looking only at price. They want value and capital appreciation,” she said. “A home priced at 80 million baht should be worth 85-90 million in five years.”
Many buyers in Sansiri’s recent projects were existing customers upgrading from smaller homes, while others were drawn by established communities and a proven record of maintaining project quality.
The implication is clear: in a saturated luxury market, brand reputation, design execution and management consistency may matter more than promotional pricing—at least for buyers who intend to hold the asset.
What this means for Phuket property
Phuket’s luxury property market operates under different dynamics than Bangkok. Buyer profiles skew more international, demand is more closely tied to tourism and lifestyle appeal, and rental yield often factors into purchase decisions.
But the underlying principle still applies. In any market where supply has increased and competition intensified, developers face a choice: compete on price or compete on value.
For Phuket buyers and investors, the Bangkok pricing tension is worth watching for several reasons:
First, it highlights the risk of buying into projects where developers rely heavily on discounting to move inventory. If price cuts become the primary sales strategy, future resale values may suffer.
Second, it underscores the importance of developer reputation, project management standards and community quality. Buyers who prioritise these factors may be better positioned to preserve capital over time, especially if market conditions remain uncertain.
Third, it suggests that luxury buyers—whether in Bangkok or Phuket—are becoming more sophisticated. They are asking not only what the home costs today, but what it will be worth in five years, and whether the developer can support that value through consistent quality and management.
What remains unclear
The Bangkok luxury market remains under pressure from economic uncertainty and rising development costs. How long the current pricing tension will last is not yet clear.
What is also uncertain is whether other developers will follow Sansiri’s value-first strategy, or whether more will turn to aggressive discounting to clear inventory as economic conditions remain soft.
For Phuket, the key question is whether similar pricing pressure will emerge as new luxury projects enter the market. So far, Phuket’s premium segment has remained relatively stable, supported by strong international demand and limited high-quality inventory in prime locations.
But if economic conditions weaken further, or if supply continues to increase faster than demand, Phuket developers may face similar choices around pricing strategy, discount depth and long-term positioning.
Frequently Asked Questions
Why are Bangkok luxury developers cutting prices by 30%?
More developers expanded into the luxury segment, crowding the market and increasing competitive pressure as economic conditions slowed. Some turned to aggressive discounts to move inventory, with homes previously marketed at 50 million baht now appearing at 39 million.
Is Sansiri still selling luxury homes without discounts?
Yes. According to the company, premium projects on Borommaratchachonnani Road and in the Krungthep Kreetha area have achieved strong sales without price reductions. Narinsiri Krungthep Kreetha, with homes priced around 50 million baht, is nearly sold out.
What are luxury buyers prioritising over price?
Buyers are increasingly evaluating projects based on design quality, after-sales service, community standards, liveability and the developer’s track record of maintaining property values over time. The focus has shifted toward long-term asset value and capital appreciation.
Could Phuket luxury property see similar discounting?
So far, Phuket’s premium segment has remained relatively stable, supported by strong international demand and limited high-quality inventory in prime locations. But if supply continues to increase faster than demand, developers may face similar pricing pressure.
What should buyers look for in a luxury property market with heavy discounting?
Buyers should evaluate developer reputation, project management standards, community quality and long-term value preservation. Deep discounts may move inventory, but they can also reset buyer expectations and potentially undermine future resale values.
Sources
- Bangkok Post — Property — Sansiri avoids luxury price war as discounts near 30% — link
