Thailand Real Estate Market Analysis for Q1 2025

In the first half of 2025, the Phuket real estate market experienced a noticeable cooling, evident in a decline in both the number of new projects and sales volumes. Compared to the same period in 2024, the number of new condominiums and villas dropped by more than 50%. This sharp decline was the result of an oversupply in the market, caused by the large number of properties completed in previous years. Although 2023 and 2024 were marked by a sales boom, the situation reversed in the first half of 2025.

As for apartments, 2,113 new properties were completed during this period, a 51% decrease compared to the same period last year, when the market was posting record results. As a result, sales also fell by 51%, to 2,192 units sold. This decline was a significant blow to a market that had recently been at its peak.

Similar trends are observed in the villa market. In the first half of 2025, the number of new projects in this segment fell by 74% compared to the previous year, totaling just 298 units valued at 10.6 billion baht. Villa sales also saw a sharp decline of 70%, reaching 231 units valued at 7.5 billion baht. Last year, on the contrary, saw a peak in sales, making the current decline even more noticeable.

One factor influencing the real estate market is the state of the tourism industry. The president of the Phuket Real Estate Association noted that housing market performance is directly linked to tourism levels, as high tourist influxes drive demand for apartments.

However, this year there has been a decline in tourist arrivals, primarily due to a decline in visitors from China. Although the number of tourists from Russia and India has increased, the overall decline caused by the decline in Chinese tourists has negatively impacted the market.

Furthermore, the new home market has also been affected by the growth of the secondary market in the post-pandemic period. Many villa and condominium owners who purchased properties as investments began selling their properties to generate profits. This has led to increased activity in the secondary market, which has become more attractive to buyers. The increase in the secondary market was also driven by a reduction in the availability of land for new construction and rising prices for new homes.

In 2024, the average price of off-plan apartments in Phuket was 121,000 baht per square meter, while apartments from owners averaged 68,000 baht per square meter. By comparison, these figures were significantly lower in 2022: 90,000 and 57,000 baht per square meter, respectively. This demonstrates that the Phuket real estate market is undergoing significant changes, and its participants must adapt to new conditions to successfully compete in a climate of declining demand and increasing supply.

Thus, the first half of 2025 has become a period of significant challenges for the Phuket real estate market, requiring market participants to be flexible and able to quickly adapt to changing conditions.