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In-Depth Analysis of the Thai Real Estate Market in 2025: Lessons from the Past, Strategies to Overcome Challenges in a Changing Era
As a veteran of the Thai real estate industry for over a decade, I have witnessed the continuous cycles of the market, both periods of prosperity and economic turmoil. 2023 was another year filled with volatility and significant challenges for the Thai real estate business. These experiences provided invaluable lessons that shaped our vision for the market in 2025. Last year, which was expected to build on the positive momentum of 2022, instead saw a continuous slowdown, starting before the general election, continuing through the end of the year, and continuing into 2024, where the situation remains unfavorable. Even in the typically peak fourth quarter, there were no clear signs of recovery.
Today, we will decode the performance of 41 leading publicly listed real estate companies to analyze who has been able to adapt and remain strong in this unfavorable environment, and what are the key strategies for achieving success in the “2025 real estate market,” which is full of new opportunities and challenges.
Overview of the Thai Real Estate Market: Lessons from the Past and Trends for 2025
2023 highlighted the fragility of the macroeconomic environment, directly impacting the Thai real estate market. Overall, 41 companies reported combined revenues of over 371,560 million baht, a slight decrease of approximately -1.2% from 2022. However, a closer look at individual companies reveals that 25 out of the 41 experienced a decline in total revenue, reflecting an uneven distribution of impact.
Companies severely affected, with negative revenues of 20% or more, include LPN Development, Eastern Star Real Estate, and Country Group Development (all experiencing declines of around -28%). Other notable companies include Raimon Land (-26%), Lalin Property (-23%), Major Development (-22%), and Siamese Asset (-21%). These companies largely rely on revenue from new project sales, and a slowing market directly impacts them.
Even giants like Land & Houses experienced a negative 18% growth in total revenue, a very interesting sign. A deeper dive into the top 10 companies with the highest total revenue in 2023 reveals that five companies saw a decrease in revenue compared to 2022. This includes AP (Thailand), which saw a less than 1% decline, but still signals that even market leaders are facing pressure. Supalai also experienced a 10% decrease, Pruksa Holdings a 9% decrease, and Origin Property a 4% decline. These figures indicate the challenging market conditions faced by developers and serve as crucial lessons for developing “real estate strategies” for the “2025 real estate market.”
Sansiri: Champion in Total Revenue in 2023 and Adapting to 2025
Among the companies facing challenges, Sansiri emerged as the top performer with 39,082 million baht in total revenue, growing by 12%, narrowly beating AP (Thailand) in second place. This demonstrates the potential for adaptability and growth even in challenging market conditions. Looking ahead to 2025, maintaining this momentum will require access to high-income customer segments, efficient inventory management, and the development of projects that meet diverse needs, especially in the luxury single-family home or premium condominium segments, which continue to experience strong demand.
In-depth Analysis: Sales Revenue and its Crucial Role in 2025
While total revenue is important, sales revenue is the key indicator of a real estate business’s core performance. While total revenue can be boosted by other factors (such as asset sales or rental income), overall, 41 companies recorded sales revenue of 268,460 million baht, a decrease of -11% from 2022. Furthermore, 30 out of the 41 companies experienced a decline in sales revenue. This clearly signals that clearing existing inventory and generating new project sales will be extremely difficult.
Companies heavily impacted by a decline in sales revenue include Raimon Land, which saw a massive -78% drop, and LPN Development, which experienced a nearly -40% decrease. Even Land & Houses saw a sales drop of -38%, a particularly noteworthy development. While AP (Thailand) led in sales, it only saw a slight decrease of -2%. Interestingly, among the top 10 companies with the highest sales revenue, eight experienced a decline. This highlights that even companies with strong brands face challenges in closing sales.
AP (Thailand): Sales Champion and Aggressive Strategy for the “Real Estate Market in 2025”
AP (Thailand) has reclaimed the number one position in sales revenue with a total of 36,927 million baht, a result of its continuous planning and project launches. In the “2025 Real Estate Market,” maintaining a leading position in sales will require more sophisticated strategies. These include developing projects that cater to specific lifestyles (niche markets), leveraging Thai PropTech to assist in sales and customer management, and offering attractive promotions and “home loan options in 2025” to stimulate purchasing power.
Sansiri is another company that performed exceptionally well in sales, with revenue growth of 7%, securing the second position with 32,829 million baht. Similarly, SC Asset Corporation climbed into the top 5 with sales revenue of 23,370 million baht and a growth of 13%. The growth of these companies demonstrates their success in identifying market trends and building strong brands.