Horizontal Housing Market Also Struggles
The challenges extend beyond condominiums to the horizontal housing market, as highlighted by Pawaran Udomsiri, Deputy Chief Executive Officer of the Residential Business Group at Frasers Property (Thailand).
While there are minor positive indicators, such as gradual interest rate reductions and clearer transportation initiatives, a broader view reveals significant headwinds.
Soaring household debt, rising non-performing loans (NPLs), reduced liquidity, high living costs, and a declining birth rate are collectively eroding consumer confidence.
“Today, consumers at all levels are cautious about spending. Even if they want to own a home, they are still hesitant to buy,” Pawaran noted.
Frasers Property anticipates the market will continue to contract by approximately 3% annually over the next three years.
Townhomes are particularly affected, with a significant number of loan applications being rejected despite genuine demand. Data from October 2024 to April 2025 shows townhome ownership transfers have already fallen by 16% year-on-year.
Despite these trends, Frasers Property achieved combined sales of approximately 20 billion baht from both horizontal and vertical developments in the first half of the year, having launched four horizontal projects and planning another four for the second half.
While the overall market outlook remains subdued, detached houses are still seen as a strong core product, followed by new premium townhomes like the GOLDINA project, which are designed for buyers with sustained purchasing power seeking long-term value.
In response to the shifting market, Frasers Property is implementing a “adapt to survive” strategy, focusing on three key pillars:
Cost reduction for materials: Shifting to high-quality, lower-cost alternative materials.
Reduced construction expenses: For example, moving from precast construction to “on-site wall pouring” for greater cost efficiency, even if it slightly impacts speed and finish.
Targeted new product launches: Developing specific house designs that precisely meet the needs of niche customer segments, recognising that the current market prioritises the “right” home over a quick purchase.