Thailand's Property Sector Adapts to New Realities Amid Seismic Shifts and Tech Revolution

 

Thailand's property sector is undergoing dramatic transformation as recent seismic activity reshapes buyer preferences while technological advances and changing investment patterns create new market dynamics, industry leaders said at a major investment forum.

 

Speaking at the 'Make Money in Real Estate' session during the Thailand Investment Forum 2025—hosted by Krungthep Turakij, Thansettakij, and Post Today on Saturday—three prominent executives outlined how the industry is adapting to unprecedented challenges while identifying emerging opportunities for investors.

 

 

Earthquake Shifts High-Rise Demand

Woradech Rukkhaphan, chief executive of VBeyond Development, said a recent earthquake has fundamentally altered housing preferences across the kingdom.

 

Despite Thailand's historically low seismic risk profile, the tremor has triggered a marked decline in sales for new high-rise residential developments exceeding eight storeys, as safety-conscious buyers increasingly prioritise structural integrity.

 

"Sales for low-rise properties remain largely unaffected," Woradech said, emphasising that while immediate concerns persist, the market has avoided catastrophic collapse.

 

 

He characterised the current environment—marked by price adjustments and developer promotions—as presenting a "golden opportunity" for purchasers.

 

The VBeyond chief executive reinforced real estate's position as a fundamental pillar of Thailand's economy, consistently supported by government stimulus measures.

 

He expressed confidence that property values would maintain their historical upward trajectory despite current market volatility.
 

 

Technology Revolution Reshapes Market

Looking ahead, Woradech highlighted technology's critical role in revolutionising real estate transactions.

 

Drawing parallels with disruption witnessed in hotel booking and taxi industries, he predicted the emergence of sophisticated platform-based solutions that will streamline connections between buyers and sellers.

 

The integration of artificial intelligence will enhance market analysis capabilities, provide deeper consumer behaviour insights, and enable more targeted marketing strategies, he explained.

 

This technological evolution coincides with a notable shift towards rental-focused property acquisition, particularly among younger demographics and foreign investors from China, the Philippines, and Japan.

 

"Properties in well-connected areas, such as those near universities and industrial zones, are becoming prime targets for rental investment," Woradech said.

 

 

Asset Managers Navigate Distressed Market

Dr Rak Vorrakitpokatorn, chief executive of Bangkok Commercial Asset Management (BAM), addressed the expanding role of asset management companies amid rising non-performing loans.
 

With commercial banks holding approximately 500 billion baht in NPLs and state-owned institutions managing another 326 billion baht, AMCs have become vital players in managing distressed assets.

 

Dr Rak said BAM has substantial capacity to handle roughly 100 billion baht of this distressed portfolio, significantly exceeding smaller competitors' capabilities.

 

 

 

He outlined the evolution of AMCs beyond traditional models, advocating for active "recycling" of distressed assets to restore profitability through aggressive management and rapid turnover of properties acquired at substantial discounts—often around 70% of appraised values.

 

BAM has embraced artificial intelligence to match distressed properties with potential buyers and investors, including smaller-scale participants, while identifying innovative uses for older assets such as converting former factories into data centres.

 

 

REITs Adapt to Challenging Environment

Thailand's real estate investment trust sector is adapting to a challenging market, with opportunities for growth emerging for disciplined investors, said Kavin Eiamsakulrat, chief executive of ALLY REIT Management.

 

He acknowledged that 2025 is proving demanding for the property sector, influenced by global factors such as trade wars and persistently high interest rates, alongside domestic shifts like an ageing population and short-term impacts on tourism.

 

He stressed that these represent a new reality demanding adaptation. ALLY REIT currently manages 14 projects in Thailand, including community malls.

 

For REITs, Kavin outlined three critical investment criteria: seeking robust cash flow, mitigating downside risk, and understanding supply and demand dynamics.

 

 

The challenge lies in finding assets that meet all three criteria—strong financials, solid narratives, and consistent cash flow throughout real estate cycles.

 

Kavin said the traditional REIT model of simply acquiring properties for rental income and distributing profits is no longer sufficient.

 

He advocated for a shift towards becoming an "active operator," entailing continuous investment in asset improvement and renovation to keep properties fresh and appealing.

 

"Whether it's offices with diverse industry tenants or hotels, strategies must constantly evolve to attract guests," he said, highlighting the necessity of dynamic marketing and creating vibrant, engaging spaces.

 

The market has shifted, and landlords can no longer simply raise rents or dictate contract terms. Instead, Kavin advised a proactive approach: thinking more deeply, finding innovative solutions, and consistently improving assets to secure rental value and enhance brand reputation.

 

He believes future growth will stem from assets with strong cash flow and inherent demand drivers, even if overall economic growth is slow.

 

He cited urban expansion, specific high-growth districts seeing 3-5% growth, and emerging trends like the ageing population and supply chain reconfigurations driving demand for logistics and data centres as key opportunities.

 

 

 

Rental Demand Drives Investment Appeal

Both Kavin and Woradech emphasised increasing rental property demand driven by evolving lifestyles and economic conditions, positioning well-managed rental assets as attractive long-term investments.

 

The executives collectively reaffirmed real estate's enduring status as a safe and essential asset class, urging investors to seek professional guidance while exploring new investment avenues in this rapidly evolving landscape.

 

As Thailand's property sector navigates this period of transformation, industry leaders remain optimistic that current challenges will ultimately yield new opportunities for those prepared to adapt their investment strategies to changing market realities.