Thai property glut lingers amid stretched consumers, limited industrial demand

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A deep dive into our Thai datasets reveals a property market encumbered by oversupply: the inventory of unsold homes is rising in Bangkok, while factory construction is taking time to catch up to an ambitious industrial development in eastern Thailand.

Consumer deleveraging is partly to blame. Thailand’s personal debt levels surpassed 95% of GDP during the pandemic; as consumers have whittled down that burden and sold assets, they aren’t taking out enough new mortgages to absorb the supply of residential property being built.

An analysis of bank lending shows that private housing loans rose less than 1% in the most recent data; only a slightly healthier figure for property development is supporting real-estate loan growth.

Land allotment permits – a legal move that developers must take before applying for construction permits in Thailand – have tumbled to the lowest in more than 16 years.

An analysis of construction permits, meanwhile, shows particular weakness in Bangkok and its suburbs.

On the industrial side, the Eastern Economic Corridor initiative has resulted in a flurry of activity. This development plan aims to spread economic and population growth east of Bangkok and is supported by Japanese foreign investment. The amount of industrial land available for development has surged, but actual factory construction has been less sustained.

The Bangkok real-estate sector will be hoping for continued support from a new source of home buyers and renters: foreign retirees, “global nomads” and wealthy entrepreneurs. The government relaxed requirements for the Long-Term Resident (LTR) visa program in 2025, resulting in a surge of home rentals by foreigners – especially in the capital.