Bangkok in real estate chaos: every fourth apartment remains empty!

Bangkok in real estate chaos: every fourth apartment remains empty!

There is an alarming picture on the housing market in Bangkok. According to a report by Nation of Thailand A total of 1.64 million apartments are unused in Thailand, which means economic losses of around 3.45 trillion baht - almost as much as the annual budget of the entire country. In particular, in the Bangkok metropolitan area, over 730,000 units are vacant, indicating excessive speculation and a critical vacancy rate of 24.8%. The situation is particularly worrying for condominiums: vacancies here make up a full 58%.

To defuse this crisis, experts are calling for a new tax on vacant properties. A survey by the Thai Real Estate Research and Valuation Center (AREA) has shown that many of these empty units not only tarnish the city's image but also inhibit overall economic development. After all, the problem primarily affects cheap apartments under 500,000 baht, which have a vacancy rate of 21.1%. These rental properties are often grossly overpriced and suffer from high maintenance fees.

The shadows of earthquake fear

In a broader context, the market was further shaken by a strong earthquake in Myanmar on Saturday, which also caused significant damage in Bangkok. How Bangkok Post reported, 13,000 buildings experienced various levels of damage, and potential buyers' confidence in the housing market has suffered greatly. Sales fell 37% in 2024 to just about 53,000 units - the lowest level in years.

The fear of earthquakes has a direct impact on the demand for condominiums. According to Colliers Thailand, sales are expected to continue to suffer in the next few months. The entire sales volume is therefore in jeopardy and buyers are becoming more hesitant about new projects. Smaller developers are particularly affected, while large developers such as Sansiri have carried out major safety audits and have so far found no structural damage to their projects.

Attractive investment opportunities despite risks

Despite the current challenges, Thailand remains an attractive destination for real estate investors. Those interested can find it in emigrate-to-thailand.net numerous advantages, such as high rental yields of 4-6% or up to 10% for short-term rentals. The combination of strong economic growth and booming tourism (over 30 million visitors annually before the pandemic) still attracts many investors.

Of course, the situation is not without risks: legal uncertainties for foreigners, market fluctuations and possible currency risks should always be taken into account. Tax aspects, such as the obligation to tax rental income and progressive income taxes, also require careful planning. However, the conclusion remains clear: Despite the current challenges, the real estate sector in Thailand offers potential that can be lucrative for smart investors.