According to a recent JLL report, six new projects are poised to make their debut in the Bangkok market by 2025, boasting an impressive average presales rate of 70%. However, most developers are adopting a conservative stance, prioritizing inventory clearance and delaying new project launches until market confidence sees a rebound.
“In the near term, rental rates are expected to surge due to high loan rejection rates, with renters increasingly leaning toward the security and flexibility that rentals provide,” the report elaborated. Despite the optimistic rental outlook, capital values are projected to rise more slowly, held back by cautious investor sentiment. Market yields are anticipated to stabilize at 5.2% through 2025, indicating a steady, albeit slow, growth trajectory.
Bangkok’s luxury condominium sector is witnessing a slight recovery, with the second quarter showing signs of resurgence, spurred by interest rate cuts and relaxed loan-to-value (LTV) measures. This bounce-back has allowed the market to return to pre-pandemic levels, although challenges remain from the economic downturn and reciprocal tariffs imposed by the US.
Prime apartments are maintaining strong traction, with half of the total inventory achieving full occupancy during the last quarter. Vacancy rates have now fallen for two consecutive quarters, decreasing by 51 basis points to 4.2%, largely driven by corporate relocations.
Despite the emergence of positive trends, the luxury condominium inventory has remained steady at 72,500 units, with no new completions noted for the second quarter. Economic uncertainties have led buyers to postpone their decisions, prompting developers to be particularly prudent regarding future launches.
The prime apartment sector saw its stock grow to 4,700 units in Q2 2025, thanks to the addition of 39 Luxury Suites. This bolstered the Central East submarket’s status as the go-to location for prime living spaces in Bangkok.
Capital values have ticked up by 1.5% quarter-on-quarter, reflecting a moderate growth tempered by broader economic challenges. With demand soaring from both domestic and international renters, gross rents have risen to THB 757 per square meter per month, marking the thirteenth consecutive quarter of growth at an impressive 4.0%. This strong performance in the rental market has nudged market yields up to 5.2%, showing that sometimes economic upheaval can lead to surprising opportunities.
What is the average presales rate for new projects in Bangkok?
The average presales rate for the expected six new projects by 2025 is 70%.
How has the luxury condominium market in Bangkok performed recently?
The luxury condominium market saw slight recovery in Q2, thanks to interest rate cuts and relaxed loan-to-value measures, bouncing back to pre-pandemic levels.
What trends are emerging in the rental market?
The rental market has experienced strong demand with gross rents growing for the thirteenth consecutive quarter, increasing by 4.0% to THB 757 per square meter per month.
