Average prices for newly launched condominium units in Bangkok are approaching levels not seen since before the COVID-19 pandemic, driven by a confluence of rising construction costs, increasing land values, and a strategic shift by developers away from lower-priced segments due to stricter mortgage approvals for middle- and lower-income buyers.
In the first half of 2026, the average selling price of new condo units reached 120,364 baht per square meter. This represents a significant increase of 9.4% from the 110,000 baht per square meter recorded at the end of 2025. This upward trend in launch prices has been consistent since 2022, climbing from 84,500 baht per square meter in 2021, which was a multi-year low. Prices rose to 87,625 baht in 2022, 95,500 baht in 2023, and surpassed the 100,000 baht mark in 2024.
The market’s previous peak was in 2018, when average prices hit 126,373 baht per square meter. This boom was largely fueled by demand from Chinese buyers. Following this peak, prices saw a slight decrease to 120,633 baht in 2019, before experiencing a sharp drop to 92,920 baht in 2020 as the pandemic severely impacted the real estate market.
Developer Strategy Shifts Amidst Economic Challenges
The current market dynamics are distinct from previous economic downturns, according to property research. Typically, developers would pivot to lower-priced housing options to align with reduced consumer purchasing power. However, this cycle sees middle- and lower-income homebuyers facing significant hurdles in securing mortgage approvals. Consequently, developers are largely avoiding new condominium launches in these more affordable segments.
“Affordable condo launches will become increasingly rare,” stated Surachet Kongcheep, head of research at Cushman & Wakefield Thailand. He cited several contributing factors: “Land prices continue to rise, construction costs remain elevated, and demand from middle- to lower-income buyers is constrained by stricter mortgage approval.”
Price Surge Driven by High-End Focus and Location
The average selling price for newly launched condo units saw a dramatic increase in the second quarter of 2026, jumping to 150,420 baht per square meter from 90,308 baht in the first quarter. This sharp rise is attributed to a strategic shift in developers’ launch strategies. Approximately 90% of new projects were concentrated along the Sukhumvit Line of the skytrain, specifically in areas outside the central business district, targeting higher-priced market segments. The remaining launches were situated in suburban Bangkok.
It is important to note that the first-quarter average price was influenced by a large, more affordable project. The Baan Chao Thai development, a 4,150-unit condo project in the Srinakarin area, offered units starting at 63,000 baht per square meter. This significantly lowered the overall average for the first quarter.
“Despite the slowdown in the condo market, developers continue to target buyers with stronger purchasing power rather than the lower-priced segment, where mortgage approvals have become increasingly difficult,” Mr. Kongcheep observed.
Factors Influencing Rising Condo Prices
Several key factors are contributing to the escalating prices of condominiums in Bangkok:
- Rising Land Costs: The expansion of the mass transit network, particularly new rail lines, has significantly increased land values in surrounding areas. Projects located near mass transit stations, especially those within walking distance, command higher prices.
- Elevated Construction Expenses: The cost of building materials and labor has remained high, adding to the overall project expenses that developers must recoup.
- Mortgage Approval Difficulties: Stricter lending criteria from financial institutions make it harder for middle- and lower-income individuals to secure the necessary financing for home purchases, leading developers to focus on segments with buyers who have easier access to credit.
- Developer Strategy: A deliberate move by developers to avoid the affordable segment and focus on higher-margin projects in prime or transit-accessible locations.
Market Adjustments and Future Outlook
In response to market conditions and the challenges in the domestic market, some developers are exploring alternative strategies. This includes shifting their focus to other popular tourist destinations like Phuket, where project launches are reportedly remaining active. Additionally, many developers are concentrating on liquidating existing unsold inventory. This is being achieved through bulk sales to improve cash flow or, in some cases, by using unsold condominium units to settle payments with construction contractors.
The trend indicates a market that is becoming less accessible for first-time homebuyers or those with moderate incomes, as developers prioritize projects that cater to buyers with greater financial capacity and navigate the complexities of mortgage accessibility.
