Bangkok condo property market to do badly in next few months due to earthquake

Many high-rise condominiums in Bangkok were left cracked and damaged following the Mar. 28 magnitude 8.2 earthquake that originated in Myanmar.

Consumer confidence in the high-rise property sector in the capital of Thailand has been rattled as a result, following the tremors in the Thai city dominated by skyscrapers, Bangkok Post and The Nation reported.

The swaying buildings seen in countless social media videos have raised anxieties about the structural integrity of high-rise residences.

This is making matters worse, as Bangkok currently has "a substantial unsold supply" of condo units, The Nation reported.

The existing market has 458.4 billion baht (S$18 billion) of unsold condo inventory.

Thailand is among the top five property markets for Singaporeans, it was previously reported.

The top five countries are UK, Japan, Australia, Malaysia and Thailand.

New low

This current slump builds on an already weak period in the third quarter of 2024, when new condo sales totalled 19 billion baht (S$747.3 million), making it the lowest level in 14 years, according to the Thai Condominium Association.

New sales in the second quarter of 2025 are likely to set a new low.

Analysts are predicting that 2025's second quarter could very likely be the weakest quarter for condo sales and transfers in 15 years.

Take three months to recover

Walk-in customers and new condo sales in Greater Bangkok, particularly for high-rise units, are expected to shrink significantly in the second quarter.

It is expected to take at least a few months to recover.

The Nation gave a two-month estimate, while Bangkok Post, citing a property expert, put the timetable at three months.

Buyers who have purchased a condo and are scheduled for transfer will likely delay the process to first assess the safety considerations.

There could be more than 50 per cent of condo buyers considering cancellations within this year.

The extent of the cancellations will depend on which developers have more visible damage and which ones can restore confidence and take responsibility for repairing the buildings.

Buy low-rise housing instead

The president of the Thai Condominium Association also noted that newer buildings constructed after 2007 are designed to withstand significant seismic activity.

But people's mindsets may have already been influenced regardless of the construction date.

The earthquake is expected to push buyers to consider low-rise houses, which are perceived as less vulnerable to seismic activity, Bangkok Post reported.

It was also noted that this resembled the shift in 2011, when property buyers were more keen to buy high-rise housing due to nationwide flooding.

Swift action by the government and developers to restore market confidence have been mooted.

Experts are suggesting providing buyers with clear information about earthquake-resistant construction and offering financial support to make structural enhancements.

Top photo via Google Maps