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In-Depth Analysis of the Thai Real Estate Market in 2024: Who are the Game Changers? Looking Ahead to 2025 Amidst a Changing Landscape
As a veteran of the Thai real estate industry for over a decade, I have witnessed numerous market fluctuations. However, 2024 marked a significant milestone, with significant macroeconomic and domestic factors impacting the market. Amidst these challenges, many real estate developers had to urgently adjust their strategies to weather the storm and seize opportunities in a still fragile market. Analyzing the 2024 annual performance of listed real estate companies is therefore not just about reporting figures, but about extracting in-depth lessons into the resilience, adaptability, and vision of each player – key to understanding the 2025 real estate outlook and future investment directions.
The 2024 Real Estate Market Landscape: Diverse Challenges and Strategic Adaptations
2024 began with hope from a slight impetus at the end of the previous year, but was met with continued pressure, including persistently high interest rates and worrying levels of household debt. Purchasing power has not yet fully recovered in some segments. Meanwhile, land development and construction costs remain a concern. Competition in the housing market remains fierce, especially in the mid-range condominium and townhouse segments, which face oversupply in some areas.
However, not all is bad. The luxury and super-luxury real estate markets have shown remarkable strength, driven by high-income buyers, both domestic and international, seeking investment properties and assets that can retain value in the long term. Furthermore, government investment in infrastructure, particularly extended mass transit projects, continues to attract new development projects along these routes, presenting significant opportunities for land development and adding value. The shift towards mixed-use development projects that generate recurring income is another trend that many companies are focusing on to mitigate the risk of relying solely on sales revenue.
Based on data compilation and analysis of the performance of over 40 leading real estate developers, I found that 2024 was a year of selective growth. Only players who adapt quickly, maintain financial discipline, and see opportunities amidst the crisis will be able to maintain their leading position. Many companies faced declining total revenue, reflecting the market slowdown and obstacles in project delivery.
Overall Revenue Overview: Friction Pertains
Overall, listed real estate companies generated a combined revenue of over 350 billion baht in 2024, a slight decrease of approximately 3-5% compared to the previous year. This figure indicates that while the market has not yet fully recovered, it has managed to maintain stability to some extent. However, a closer look reveals significant differences in the performance of individual companies.
Companies experiencing significantly negative total revenue include developers who primarily relied on the mid-range condominium market, impacted by slowing purchasing power and stricter loan conditions. Furthermore, companies focusing on lower-to-mid-range projects continue to face high loan rejection rates, making property transfers difficult and directly impacting recognized revenue.
Conversely, companies that have performed well in expanding their revenue base tend to be those with diversified product portfolios, including low-rise, high-rise, and commercial real estate, or those focusing on niche markets with high demand, such as luxury condominiums in prime locations or high-end single-family homes, which continue to attract high-net-worth customers.
2024 Total Revenue Champions: Outstanding Adaptability
Sansiri takes the top spot in total revenue for 2024, maintaining its leading position with a strategy of launching projects across all segments and effectively penetrating international markets. Its continued revenue growth demonstrates its adaptability and strong brand building.
Following closely is AP (Thailand), which has proven its expertise in developing projects that meet the needs of the mid-to-high-end market, particularly its low-rise projects which remain a key source of revenue. Strategic management of its product portfolio and locations is also key.
In third place is Supalai, which continues to maintain impressive operational stability through project diversification and an emphasis on quality and reasonable pricing, maintaining consumer confidence.
Other companies in the Top 10 have also demonstrated efforts to adapt their strategies to market conditions. For example, Land & Houses continues to generate revenue from its rental and hotel businesses, while Pruksa Holdings focuses on improving internal efficiency and innovating in project development.
Revenue from Sales: The Heart of the Real Estate Development Business
To truly measure competitiveness, one must consider “revenue from sales,” or the number of property transfers. This is because it directly reflects the market’s response to the company’s products. In 2024, overall sales revenue for over 40 companies decreased by approximately 8-10% from the previous year, signaling that the real estate market continues to face ongoing challenges.
Companies experiencing a significant decline in sales revenue are often those without readily available inventory.
