Pressured property developers look to adapt

Demand exists, but burdened consumers focus on price, writes Kanana Katharang-siporn

- 

The residential property market closed 2025 under heavy pressure from weak purchasing power, tight mortgage lending and external shocks, prompting developers to recalibrate strategies for 2026 around affordability, risk management and liquidity preservation.

Tritecha Tangmatitham, managing director of SET-listed developer Supalai, said the company will prioritise risk management in 2026, focusing on affordable housing priced between 4-8 million baht, and expanding into new and existing provincial markets.

He said Supalai plans to grow in provinces such as Suphan Buri, while reinforcing its presence in high-potential markets like Chon Buri and Chiang Mai, where real demand remains despite broader economic headwinds.

"In 2026, the property market will remain challenging, with intense competition in sales prices per unit," Mr Tritecha said, adding buyers will remain price-sensitive and increasingly focused on promotions rather than design or additional functions.

Overall demand still exists, but concerns over affordability are becoming more pronounced, reshaping purchasing decisions and forcing developers to compete more aggressively on pricing and incentives, he said.

Supalai expects its 2025 performance to soften slightly from the previous year, reflecting weaker purchasing power, a sluggish condo market and lingering effects from the earthquake earlier this year.

"The condominium segment underperformed compared with 2024, while low-rise housing recorded a slight contraction, highlighting diverging dynamics across residential product types," said Mr Tritecha.

Looking ahead, he said conditions could improve modestly in 2026, with the condo market relying heavily on new project launches, though overall growth is likely to remain limited.