Secondhand homes and condos drive Thai property revival

As Thailand’s real estate market continues to experience a prolonged slowdown, major developers are beginning to scale down project sizes, shift focus to the high-end segment, or even tighten budgets to mitigate risk. At the same time, a new wave of emerging players has begun to quietly push the market forward, despite the crisis.

One particularly noteworthy trend is the rise of secondhand condominiums and houses, largely driven by small-scale businesses. These ventures often involve partnerships between real estate brokers and architects who employ a savvy strategy: renovating foreclosed homes purchased through the Legal Execution Department and reselling them for a 10–15% profit margin per unit, significantly higher than the often single-digit returns from new developments.

According to Sunthorn Sathaporn, President of the Housing Business Association and CEO of Sathaporn Real Estate Co., Ltd., transfer data from 2024 paints a clear picture: secondhand homes have become the market’s standout, accounting for 62% of total property transfers, or 217,072 units, compared to only 38% (130,727 units) for new homes out of a total of 347,799.

“The key factors behind the popularity of secondhand homes are location and pricing,” Sunthorn explained. “These properties are often situated in small alleys within core business districts (CBDs) and are roughly 20% cheaper than new homes. In times of economic downturn, when many homeowners default, foreclosures increase, and that creates opportunity for renovation-driven investors who can unlock hidden value.”

Sathaporn Real Estate is currently exploring opportunities in the secondhand and condominium markets, particularly through rent-to-own models targeting clients who are not immediately mortgage-eligible. This aligns with a broader megatrend already embraced by real estate agents and architects who possess the knowledge and skills to manage renovation costs and effectively tap into demand from specific buyer segments.

This observation is echoed by Chayanan Keeratitechanon, CEO of Wealthiness Estate Co., Ltd., a property agency and brokerage. She noted a recent influx of investors, particularly engineers and architects, entering the market in the aftermath of recent earthquakes. These professionals are acquiring cracked or structurally impacted condos, renovating them, and flipping or leasing them. Given that most condos built after 2007 comply with modern seismic standards, the properties retain solid structural integrity, making them appealing to end-buyers and renters alike.

“With purchasing power still limited, secondhand homes and condos offer a practical solution,” Chayanan said. “They meet the lifestyle and financial realities of many buyers today, and help reduce household risk amid ongoing economic uncertainty.”

Another important perspective comes from Prawit Anusiri, President of the Thai Real Estate Brokers Association, who revealed that there are currently over 1.4 million vacant homes in the Thai market. Of these, around 400,000 units are new builds, while 800,000 to 900,000 units are secondhand properties, with a combined market value exceeding 1 trillion baht. A significant portion of these assets is held by banks and the Legal Execution Department. Government measures, he added, have played a key role in stimulating this segment, contributing to a 30% market growth.

Among the most impactful policies is the reduction of transfer and mortgage fees to just 0.01%, drastically lowering transaction costs. This has opened the door for small-scale investors, particularly salaried employees and freelancers, including doctors, engineers, and architects, to enter the secondhand property market more seriously, in some cases even turning it into a primary source of income.

Secondhand homes are no longer just old assets — they’re new business opportunities

Secondhand properties not only offer more attractive pricing, but also enjoy prime urban locations that are increasingly scarce in the new-home market. Financially, these properties often come with built-in advantages: no need for a down payment, and easier bank financing due to the asset already being within the financial system. It's no surprise, then, that even large developers have started entering the secondhand segment.

One notable example is AP Thailand, which has launched a new business unit called HOMERUN, a Proptech venture focused on managing and revitalising secondhand properties. The company buys, renovates, and resells homes in central urban locations, combining digital technology and real estate insight to better serve both sellers and buyers looking for affordable, move-in-ready homes without the hassle of renovation.

“Land in prime city areas is increasingly expensive and scarce,” AP’s spokesperson explained. “Yet the demand for urban living remains strong. This is driving the popularity of both secondhand condos and houses.”

The hottest secondhand property markets this year include Bangkok, Samut Prakan, Chonburi, and Nonthaburi, as well as the Eastern Economic Corridor (EEC), where industrial investors are shifting interest toward factories and rental warehouses.

In contrast, the new-home market is facing a slowdown, with a stockpile of over 200,000 unsold units that could take up to four years to clear. Meanwhile, the secondhand sector is asserting itself as the driving force behind the real estate recovery, creating business opportunities and potentially shifting the overall direction of Thailand’s property market.

“Real estate doesn’t have to be new to be valuable — if the location is powerful, the age doesn’t matter.”