Bangkok’s Condo Market Enters Shaky Ground

The Bangkok condo market, valued at over 458 billion baht, is facing a turbulent moment following the March 28, 2025, earthquake—a 7.7-magnitude event with its epicenter near Mandalay, Myanmar, that sent shockwaves through Thailand’s capital.

Key Takeaways

The collapse of a 33-story building under construction near Chatuchak Market, which killed at least 10 workers and left dozens unaccounted for, has thrust structural safety into the spotlight, shaking consumer confidence and threatening an already fragile real estate sector

Before the quake, the condo market was showing some signs of recovery. In 2024, new supply in the economy segment (priced below 80,000 baht per square meter) tallied 13,000 units, down from 26,000 in 2023, while the mass market (80,000-150,000 baht per square meter) launched 14,000 units, per Terra Media and Consulting. Absorption rates were improving as existing stock dwindled, with developers slashing prices to move inventory.

Foreign demand, driven primarily by Chinese and Russian buyers, surged in 2023, with 14,449 units sold to overseas investors—a 25% increase compared to the previous year, according to the Real Estate Information Center. However, sluggish growth persisted due to weak domestic purchasing power, elevated mortgage rejection rates, and a lingering oversupply from the pandemic.

The earthquake has upended this tentative rebound. The Chatuchak collapse exposed vulnerabilities in construction standards, despite Bangkok Governor Chadchart Sittipunt’s claim that most new buildings are designed to withstand quakes. The Thai Condominium Association insists that post-2007 high-rises meet seismic codes, but public anxiety is palpable—videos of swaying towers and sloshing rooftop pools have gone viral, amplifying fears. The Thai Hotels Association estimates a 10-15% drop in tourist arrivals over the next two weeks, which could ripple into reduced demand for short-term condo rentals, a key income stream for investors.

Sales are expected to dip as buyers hesitate, particularly in Bangkok’s high-rise-heavy core. The mass market, dominant in outer areas, may fare better due to affordability, but luxury units (above 10 million baht), projected to hit 8% of the market in 2025, could stall. Developers face pressure to prove structural integrity, while calls for stricter regulations and earthquake-resistant technologies grow louder. The government’s recent relaxation of Loan-to-Value limits, effective May 1, 2025, aims to spur investment, but its impact may falter without swift action to restore trust.

The market’s future depends on the response. If safety audits and upgrades succeed in restoring buyer confidence, stability could be achieved by mid-2025. However, failure to do so could turn this seismic shock into a more profound rupture, leaving Bangkok’s skyline—and its condo market—on unstable footing.

The government and industry stakeholders are now under immense pressure to act decisively. Developers may need to adopt stricter building regulations and transparency measures, while financial institutions could tighten lending criteria to mitigate risks. Simultaneously, buyers are likely to demand greater accountability, pushing for independent inspections and long-term maintenance guarantees.

If these measures are implemented effectively, the condo market might not only recover but also emerge stronger, with a renewed focus on quality and trust. Conversely, a lack of coordinated effort could lead to a prolonged downturn, eroding investor interest and potentially reshaping Bangkok’s real estate landscape for years to come.