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Turnaround and Crisis Strategies: Lessons from 2023 Towards the Changing Thai Real Estate Landscape in 2025
As a veteran of the Thai real estate industry for over a decade, I have witnessed numerous market cycles, but none reflected the dynamism and challenges as clearly as 2023, and continuing into the new landscape we face in 2025. 2023 was another year that tested the Thai real estate market significantly. Expectations of a sustained rebound in late 2022 faded rapidly. The market began to slow down before the general election and remained sluggish until the end of the year. Even the peak season of the fourth quarter failed to revive purchasing power. This situation has left valuable lessons that developers must adapt to survive and grow in the new era.
Looking into 2025, the Thai real estate market is not just recovering from a slowdown, but undergoing a crucial paradigm shift. Market players must have a deep understanding of the fundamentally changing macroeconomic factors and consumer behavior, global economic volatility, and domestic political uncertainty. Persistent high interest rates and fragile purchasing power are factors that make this year’s market landscape more complex and challenging than ever before. At the same time, it presents a golden opportunity for forward-thinking entrepreneurs who can adapt their strategies quickly.
Analysis of the Economic Situation and Macroeconomic Factors Affecting the Thai Real Estate Market in 2025
The economic situation in 2025 remains a key variable determining the direction of the real estate market. While inflation has begun to slow, it continues to put pressure on consumer living costs, consequently slowing down purchasing power for houses and condominiums. Furthermore, monetary policy focused on maintaining interest rates within a defined range to control inflation keeps financing costs high for both developers and homebuyers. Commercial banks remain strict in their lending criteria, especially for individual buyers with high income risks. This situation forces real estate developers to work harder to offer affordable projects with attractive financing terms. Therefore, seeking “low-interest home loans” is a crucial factor in consumer decision-making.
In terms of government policy, the government has attempted to stimulate the economy through large-scale infrastructure projects, which is a positive factor for “real estate development” in areas along mass transit lines and in promising provincial cities. However, the impact will not be clearly visible in the short term. It takes time to implement and build investor confidence. Furthermore, measures to promote foreign investment and attract high-income buyers from around the world are mechanisms the government is pushing to inject funds into the “luxury real estate market,” which remains a vibrant and resilient segment amidst economic volatility.
Another crucial factor is demographic change. Thailand’s rapidly aging society is creating increased demand for housing tailored to senior needs, such as ready-to-move-in single-family homes emphasizing safety and functionality, or condominiums with comprehensive healthcare services. Additionally, the popularity of hybrid or remote work continues, driving demand for more spacious residences with home office space and closer proximity to nature.
Competitive Landscape: Who are the Real Winners in the Thai Real Estate Market in 2025?
Analyzing past performance (e.g., 2023) is a vital starting point for understanding which companies can adapt and gain a competitive advantage in a challenging market. While overall revenue and sales revenue of the 41 listed companies on the Stock Exchange of Thailand in 2023 are projected to decline slightly by -1.2% and -11% respectively, reflecting a sluggish market, a deeper analysis reveals that some companies have defied the trend and achieved impressive growth. Learning from those who succeeded and failed during that time will help us see strategies that work in the current situation in 2025.
Total Revenue: The Power of Diversification and Precise Marketing
In 2023, companies like Sansiri emerged as champions with total revenue growth of 12% amidst a contracting market. This figure was not just a temporary success, but the result of a comprehensive strategy, including the launch of diverse projects covering all segments, from mid-range to “luxury real estate,” and the ability to adapt to rapidly changing market demands. In 2025, Sansiri maintained this momentum by focusing on building strong brands and reaching more specific target groups, especially high-income consumers both domestically and internationally. The launch of “mixed-use projects” that combine residential, retail, and workspace areas remains a key strategy that allows them to generate revenue from multiple channels.
Meanwhile, companies like Land and Houses, despite a total revenue decrease of 18% in 2023, still maintained a high level of net profit from the sale of assets to Real Estate Investment Trusts (REITs). This is a clear example of… “Real estate strategy” that emphasizes portfolio management and creating added value from existing assets rather than relying solely on sales of new projects. In 2025, Land & Houses will continue to focus on creation.
