Bangkok: Real estate companies are being advised to prioritize liquidity and maintain low debt levels as the market shows signs of passing its lowest point without a strong recovery.
According to Thai News Agency, insights shared during the KKP Year Ahead 2026 annual seminar organized by Kiatnakin Phatra Financial Group highlighted the fragile state of the Thai real estate sector despite having moved past its most challenging period in 2025.
Mr. Traitecha Tangmatitham, Managing Director of Supalai Public Company Limited, and Ms. Narumon Eksamut, Securities Analyst at Kiatnakin Phatra Securities Public Company Limited, discussed the ongoing structural pressures affecting the market. They noted that while the sector has moved beyond its lowest point, the anticipated recovery in 2026 is unlikely to be swift. Key issues include declining core purchasing power, a shift towards renting over buying among younger generations, and reduced foreign demand, all contributing to market tightness.
The seminar revealed that financial institutions have tightened lending policies, which has intensified competition for borrowers, particularly in the housing segment priced below 3 million baht. This has resulted in smaller developers losing market share to larger companies. By 2025, it is expected that the top five developers will account for 53% of new project launches, up from 33% in 2024, with a significant focus on the condominium market.
Mr. Traitecha emphasized the importance of financial stability for businesses, recommending a strategy centered on high cash flow and liquidity with controlled debt levels. This approach would enable developers to capitalize on opportunities to acquire high-quality land at reduced costs. Additionally, he advised against investing in office spaces, small hotels, and vacant land due to current oversupply and the burden of land taxes, with asset valuations not expected to rise in the near term.