LUXURY RESIDENTIAL MARKET RISES ABOVE ECONOMIC HEADWINDS WITH RESILIENT DEMAND

Thailand's luxury residential market continues to show remarkable resilience and growth, even as the broader economy faces headwinds from global trade policies and internal slowdowns.

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This segment remains uniquely strong, driven by high-net-worth individuals whose businesses are often less affected by economic shifts, underscoring the enduring appeal of premium properties in the Kingdom.

"While the overall market acknowledges a slowdown this year, what truly stands out is the unwavering confidence of luxury buyers," remarked Artitaya Kasemlawan, Head of Residential Sales - Project at property consultancy CBRE Thailand. "They view these properties not just as homes, but as enduring assets that transcend market cycles."

Despite initial concerns following the recent earthquake, public sentiment has since rebounded. The broader housing market is now primarily influenced by economic conditions-both domestic and global-with uncertainties surrounding U.S. trade policy. This affects overall sentiment, tightening loan approvals, particularly in the non-luxury segments.

While some import-export businesses adopt a cautious "wait-and-see" approach due to trade uncertainties, the inherent stability of luxury real estate continues to attract substantial capital, emphasising its long-term investment appeal.

LOW-RISE HOUSE MARKET: EVOLVING DEMANDS AND STRATEGIC ADJUSTMENTS

The low-rise house market has significantly evolved, now featuring an "Ultra Luxury" category for homes exceeding 100 million baht. This expansion reflects a growing demand for distinct specifications and features beyond traditional luxury offerings as noted by Ms Artitaya.

According to CBRE, new launches across all low-rise segments were consistently high until 2022 when supply levels nearly returned to pre-Covid levels. However, increased supply, combined with a softer economy, led to a decline in new launches from 2023 through 2024.