Thailand Rises as a Dominant Player in Southeast Asia’s Luxury Real Estate Market

Southeast Asia’s luxury real estate market has seen remarkable growth in 2025, positioning itself as a vibrant and sought-after sector for high-net-worth individuals (HNWIs) and global investors. Spanning countries such as Thailand, Singapore, Vietnam, Malaysia, Indonesia, and the Philippines, the region is thriving due to robust economic expansion, rising affluence, and evolving consumer preferences.

Key Points

• Branded residences, typically licensed by global hotel brands, are becoming increasingly popular in Southeast Asia, with Asia accounting for 21% of global projects and Southeast Asia comprising 12% of that number.
• Thailand dominates the regional market for branded residences, with 12,656 launched units worth $6.2 billion, and new projects emerging in the capital, Bangkok.
• One of the most talked-about projects in the country is Porsche’s residential tower in Bangkok’s upscale Thong Lo area. Slated to complete in 2028, the 95-meter-high tower will comprise 22 units priced between $15 million and $40 million.

The market is projected to grow robustly, with the broader Southeast Asian real estate sector expected to reach a value of US$27.07 trillion in 2024, of which residential real estate—particularly the luxury segment—plays a significant role, forecasted at US$23.31 trillion.

By 2029, this is anticipated to climb to US$30.79 trillion, growing at an annual rate of 2.61%. Within this, the luxury segment is fueled by a rising number of ultra-high-net-worth individuals (UHNWIs), with projections suggesting a 45.2% increase in their population by 2028 in markets like Thailand, Vietnam, and the Philippines, outpacing the regional average.

Thailand stands out as a key player, particularly in cities like Bangkok and Phuket. Phuket’s luxury market thrives due to its booming tourism industry, which has surpassed pre-pandemic levels, attracting significant investment in branded residences—properties tied to high-end hospitality brands like Ritz-Carlton, Four Seasons, and Anantara.

These residences, offering exclusivity and hotel-style services, dominated top sales in the Asia-Pacific region in 2024 for companies like Minor International. Bangkok, meanwhile, sees strong demand from Chinese and European buyers, with condos and high-end homes priced above 50 million baht (around US$1.5 million) drawing local and foreign interest. Thailand’s appeal is enhanced by favorable visa policies, such as long-term options for wealthy individuals introduced in 2022, and its relative affordability compared to global hubs like Hong Kong or London.

Singapore remains a powerhouse, ranking among the top 20 global destinations for Asian investors seeking second homes. Its mature market, stable political environment, and high standard of living make it a magnet for mainland Chinese buyers, who own an average of 3.8 properties worldwide. Luxury landed properties and condominiums in prime districts like District 9 are in high demand, catering to both local HNWIs diversifying portfolios and international investors. Prices here, while elevated—offering 64 square meters of prime real estate for US$1 million—still provide value compared to New York or London.

Emerging markets like Vietnam and the Philippines are also on the rise. In Vietnam, Ho Chi Minh City’s luxury apartment prices start at around US$5,000 per square meter, significantly lower than Bangkok or Singapore, driving demand from both domestic buyers and investors from Taiwan, Hong Kong, and China. Coastal developments and proximity to future infrastructure like the metro line (expected by 2022 but delayed) add to its allure. The Philippines, particularly Metro Manila, sees growth in areas like Taguig and Makati, where rapid urbanization and a growing middle class fuel demand for high-end properties, supported by a projected GDP growth of 6.1% in 2025.

A notable trend across the region is the rise of branded residences, which blend luxury living with professional management, appealing to UHNWIs seeking both lifestyle and investment returns. These properties often feature turnkey rental programs, generating income while minimizing ownership hassles—especially popular in tourism-driven areas like Phuket and Bali. Sustainability is another growing priority, with 75% of UHNWIs seeking eco-friendly homes incorporating energy-efficient designs, solar panels, and green spaces, as seen in projects like Singapore’s Wallich Residence.

Overall, Southeast Asia’s luxury real estate market in 2025 is characterized by resilience and opportunity. With economic growth, a burgeoning affluent class, and strategic positioning near China, the region is poised for continued expansion. Cities like Phuket, Bangkok, Singapore, and Ho Chi Minh City are set to see robust price growth of 1.5-4.5% in prime residential markets, though markets like Jakarta and Kuala Lumpur may lag due to oversupply. For investors and buyers, the blend of affordability, luxury, and stability makes Southeast Asia an increasingly compelling destination.

The influx of foreign investments and government initiatives aimed at boosting infrastructure development further enhance the appeal of Southeast Asia’s luxury real estate market. High-speed rail projects, improved connectivity, and urban redevelopment plans are transforming cities into modern hubs, attracting both regional and international buyers. Additionally, the rise of eco-friendly and sustainable developments is aligning with global trends, drawing environmentally conscious investors.

However, challenges remain. Political instability in certain countries and regulatory hurdles could temper growth in specific markets. Currency fluctuations and varying property ownership laws for foreign buyers may also impact investor confidence. Despite these obstacles, the region’s long-term potential remains strong, supported by its young population, growing middle class, and strategic location as a gateway to the Asia-Pacific.