Supalai: Real Estate Price War Cuts Land Costs 20%, Buyers Down to 4

Khaosod•Economy•19d ago

Reader Briefing

Supalai attributes the real estate sector's ongoing price competition and economic pressures to a 20% drop in land prices, consolidating the market among four major buyers.

•The Thai real estate market faces significant price competition, leading to a 20% decrease in land prices.
•This market condition has consolidated land purchases to only four major buyers.
•Economic pressures, purchasing power, and strict lending are expected to continue impacting the housing market in 2026.
•Construction costs are permanently higher, even if geopolitical conflicts de-escalate.
•The condominium market is nearing equilibrium due to a consistent low number of new project launches.

Overview

•Trijedtha Tangmatitham of Supalai forecasts a challenging real estate market in 2026 due to economic pressures, weak purchasing power, and tight credit.
•Land prices have decreased by 20% due to intense price competition among real estate developers.
•The reduction in land prices has consolidated the buyer pool to only four major entities.
•Construction costs are expected to remain permanently high, irrespective of conflict de-escalation.
•The condominium market is entering a state of equilibrium, attributed to a sustained low launch of new projects.
•Developers are compelled to compete significantly on price, leading to a clear reduction in new project launches compared to the previous year.
•Supalai plans to proceed with land purchases at reduced prices, capitalizing on market opportunities.

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Key Quotes

Trijedtha Tangmatitham

"“The market is still difficult. Price competition still exists, forcing operators to compete considerably. The number of new projects launched this year is expected to be clearly lower than last year.”"

“ตลาดยังยากอยู่ การแข่งขันด้านราคายังมี ทำให้ผู้ประกอบการต้องแข่งขันกันพอสมควร โดยจำนวนโครงการเปิดใหม่ปีนี้น่าจะต่ำกว่าปีที่ผ่านมาอย่างชัดเจน”

Key Entities

Organization

Supalai(ศุภาลัย)

A real estate developer commenting on the Thai property market.

Person

Trijedtha Tangmatitham(ไตรเตชะ ตั้งมติธรรม)

Executive of Supalai, providing analysis on the real estate market.