Demand within the 10-30 million baht price segment remains the key market driver.
The luxury housing market in Bangkok is expected to remain stable or cautiously expand, balanced by supportive factors and certain limitations that require close monitoring, said Knight Frank in a recent report.
“On the positive side, real demand for housing from high-income groups remains a key driving force, as these buyers are not directly affected by short-term economic fluctuations. Additionally, there is a growing tendency to view luxury homes as both a residential option and a means of diversifying investment risk away from financial markets,” the report said.
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At the same time, leading developers continue to launch new luxury projects in prime locations such as Ratchapruek, Krungthep Kreetha, Rama IX–Bangna–Samut Prakan, and Thonburi, as this segment offers high returns per unit and lower inventory risks compared to the broader market. Furthermore, if the government extends property stimulus measures, such as reducing transfer and mortgage registration fees for high-priced homes or easing LTV (loan-to-value) regulations, it could further support purchasing decisions.
However, the market still faces several risk factors, particularly regarding interest rates, which, despite a potential downward adjustment in the second half of 2025, remain higher than historical averages. This may affect buyers who rely on mortgage financing for luxury home purchases. Additionally, the household debt level, which remains high at approximately 89–90% of GDP, may impact overall consumer confidence, even though it may not directly affect the primary target group of this segment.
Moreover, the accumulated supply during 2023–2024 may begin to exceed demand in certain locations, especially in the high-priced low-rise segment where multiple projects have been launched simultaneously. This could result in a slower absorption rate for some segments of the market going forward.
Mr. Frank Khan, Partner and Head of Residential at Knight Frank Thailand, commented, “Despite overall economic uncertainties, the luxury housing market in Bangkok continues to be underpinned by a solid base of high-net-worth buyers who seek residences that align with their lifestyle needs and long-term quality of life. Demand within the 10-30 million baht price segment remains the core driver of the market, while the ultra-luxury segment maintains steady demand among niche clientele. Going forward, developers should focus on product differentiation and tailored offerings that address the specific needs of target buyers in order to ensure long-term market stability.”
