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Uncovering the Thai Real Estate Market’s Vision for 2025: Lessons from Giants for Golden Opportunities in an Era of Adjustment
As a veteran of the Thai real estate industry for over a decade, I have witnessed countless market upheavals. However, the past 2023-2024 period has been a more intense test than ever for entrepreneurs at all levels. The outlook for 2023, which we had anticipated would see a full recovery after the crisis, has turned out to be a year of repeated challenges, both from internal and external factors. This has unfortunately disrupted the momentum that had been simmering in 2022. This trend continues into 2024, where the market will continue to face waves of uncertainty, including an economic slowdown, high interest rates, soaring household debt, and a marked decline in consumer purchasing power.
But every crisis brings opportunity, and in 2025, I believe the Thai real estate market is entering an “era of ultimate adjustment.” Entrepreneurs who can learn from past successes and mistakes will seize the golden opportunity and emerge as true leaders in this battlefield. This article examines the performance of 41 leading real estate companies listed on the Stock Exchange of Thailand (SET) in 2023, compiled by Property Mentor. The report explores their strategies, strengths, weaknesses, and looks ahead to key trends and trends that will shape the real estate market landscape in 2025. This aims to prepare readers, including investors, developers, and interested parties, to take advantage of this market full of potential.
Decoding 2023-2024: The Challenging Landscape and Adaptation of the Thai Real Estate Market
Looking back to 2023, the Thai real estate market was like a ship facing strong winds. Despite efforts to emerge from the crisis, negative factors from all sides hindered the slow recovery. Data from 41 real estate companies listed on the Stock Exchange of Thailand indicates that the industry’s total revenue was approximately 371.56 billion baht, a slight decrease of approximately 1.2% from 2022, which saw total revenue of 376.141 billion baht. This figure may not seem like much, but a closer look at each company reveals that 25 of the 41 companies experienced a significant decrease in total revenue.
Some companies faced negative revenue declines of more than 20%, such as LPN Development, Eastern Star Real Estate, and Country Group Development, which saw revenue declines of approximately -28%. Raimon Land also saw a -26% decline, Lalin Property -23%, Major Development -22%, and Siamese Asset -21%. These figures reflect the vulnerability of some developers who may not be able to quickly adapt to the market’s slowing purchasing power and high interest rates, particularly those focused on the mid- to low-end condominium market or those with large inventory holdings that are burdened with financing costs.
Even major players like Land and Houses Even the Thai real estate market is facing an 18% decline in total revenue. Interestingly, among the top 10 companies with the highest total revenue in 2023, five companies saw a decrease in revenue compared to the previous year. These include AP (Thailand) with a slight decrease of less than 1%, Supalai -10%, Pruksa Holding -9%, and Origin Property, whose total revenue decreased by approximately -4%. This indicates that even major players are facing market pressure and must continually adjust their strategies.
The market slowdown in late 2023 and into 2024 is the result of a combination of factors. These include post-election political uncertainty, which has dampened the investment and consumption climate; high policy interest rates to control inflation, which directly impacts developers’ financing costs and the purchasing power of those seeking real estate loans; and Thailand’s record-high household debt, which has led financial institutions to exercise caution in granting loans, making home loans more difficult, especially for middle- to low-income buyers.
In-depth look at the forces: Who are the real survivors and leaders in the real estate battlefield?
Determining the real winner in the real estate market cannot be determined by a single metric. We must consider total revenue, sales revenue, and, most importantly, net profit, which reflects management efficiency and true profitability.
Total Revenue: The Big Picture That May Hide Something
In 2023, Sansiri emerged as the champion in total revenue with 39.082 billion baht, a strong 12% growth, significantly beating out its perennial rival, AP (Thailand), which reported 38.399 billion baht in total revenue. Supalai came in third with 31.818 billion baht, followed by Land and Houses (30.17 billion baht) and Pruksa Holding (26.132 billion baht).
Top 10 Real Estate Companies Highest Total Revenue in 2023:
Sansiri: 39,082 million baht (+12%)
AP (Thailand): 38,399 million baht (<-1%)
Supalai: 31,818 million baht (-10%)
Land and Houses: 30,170 million baht (-18%)
Pruksa Holding: 26,132 million baht (-9%)
SC Asset Corporation: 24,487 million baht
Univentures: 17,672 million baht
Frasers Property (Thailand): 16,169 million baht
Origin Property: 15,157 million baht (-4%)
Singha Estate: 15,066 million baht
Analysis: Sansiri achieved 12% total revenue growth in a slowdown year. It reflects the strength of the brand, the marketing strategy that reaches a diverse target group, and the effective management of the project portfolio. However, the total revenue may not reflect the ability to “sell” all new products.
