Thailand’s property sector is undergoing significant change as recent seismic events have shifted buyer preferences and technological advances reshape market dynamics, industry leaders said during the Thailand Investment Forum 2025 held on Saturday.
Earthquake Alters Demand for High-Rise Buildings
Woradech Rukkhaphan, CEO of VBeyond Development, explained that despite Thailand’s historically low earthquake risk, a recent tremor has caused a notable drop in sales of new high-rise residential buildings above eight storeys. Buyers now prioritise structural safety more than before. However, sales of low-rise properties remain stable. Woradech described the current market environment, featuring price adjustments and developer incentives, as a “golden opportunity” for buyers. He reaffirmed the real estate sector’s role as a key pillar of the Thai economy, supported by ongoing government stimulus, and expressed confidence in property values maintaining their long-term upward trend despite short-term volatility.
Technology Drives Market Transformation
Woradech also highlighted technology’s growing influence on real estate transactions. He compared the coming disruption to that seen in hotel bookings and ride-hailing services, predicting advanced platform-based solutions will better connect buyers and sellers. Artificial intelligence will enhance market analysis, deepen understanding of consumer behaviour, and enable more focused marketing efforts. This tech evolution aligns with a shift towards rental property investments, especially among younger buyers and foreign investors from China, the Philippines, and Japan. Properties near universities and industrial zones are becoming particularly attractive for rental purposes.
Asset Management Firms Address Distressed Assets
Dr Rak Vorrakitpokatorn, CEO of Bangkok Commercial Asset Management (BAM), discussed the expanding role of asset management companies amid rising non-performing loans (NPLs). Commercial banks hold about 500 billion baht in NPLs, with state-owned institutions managing another 326 billion baht. BAM has the capacity to manage roughly 100 billion baht of distressed assets, surpassing smaller competitors. Dr Rak emphasised the challenge of identifying assets with strong financials, compelling narratives, and steady cash flow throughout real estate cycles.
Evolving REIT Strategies
Kavin, another industry executive, noted that the traditional real estate investment trust (REIT) model—focused on acquiring properties for rental income and profit distribution—is no longer sufficient. He advocated for REITs to become “active operators” by continuously investing in asset improvements and renovations to maintain appeal. This approach applies to offices, hotels, and other property types, requiring dynamic marketing and creating engaging environments. Landlords can no longer rely on simply raising rents or imposing contract terms; instead, they must innovate to sustain rental values and enhance brand reputation. Kavin pointed to urban expansion, high-growth districts with 3–5% growth, and trends such as an ageing population and supply chain shifts driving demand for logistics and data centres as key opportunities.
Rental Demand Fuels Investment Interest
Both Kavin and Woradech emphasised rising demand for rental properties driven by changing lifestyles and economic factors. Well-managed rental assets are viewed as attractive long-term investments. They reaffirmed real estate’s status as a safe, essential asset class and encouraged investors to seek professional advice while exploring new opportunities in this evolving market.
The property sector’s transformation, shaped by seismic shifts and technological progress, presents challenges alongside fresh prospects for investors willing to adapt their strategies.
