The recent 7.7 magnitude earthquake on March 28, 2025, with its epicenter in Myanmar, has had repercussions for the real estate market in Bangkok. Although the city lies approximately 1,200 kilometers from the epicenter, over 13,000 buildings in Bangkok sustained damage. Among them was a 30-story tower that collapsed during construction, resulting in dozens of fatalities and missing persons.
In the aftermath, many expatriates left Bangkok, further weakening a market already under pressure. The question now arises: in light of these events, is real estate investment in Bangkok still worthwhile?
Impact on the real estate market in Bangkok
1. Decline in confidence in high-rise construction
The earthquake has shaken public confidence in high-rise developments. Many residents reported cracks and structural damage in their apartment buildings, prompting a noticeable shift in buyer preference toward low-rise housing.
2. Mounting condominium oversupply
Bangkok’s high-rise condominium market was already facing an oversupply. By the end of 2024, the Greater Bangkok region had approximately 235,000 unsold residential units—the highest number since 2018. The earthquake has further dampened buyer interest, despite the relatively limited structural damage thanks to strict building standards.
3. Delays in property transfers
Property transfers—particularly for high-rise condominiums—have slowed significantly. Kasikorn Securities forecasts a 50% drop in the value of property transfers for high-rise projects in 2025 compared to 2024. This trend directly affects developers' liquidity.
4. Government support measures
In response to the crisis, the Thai government has introduced relief measures to support the real estate sector. Transfer and mortgage registration fees for properties up to 7 million baht have been temporarily reduced to 0.01%. Additionally, lending criteria have been eased to improve access to mortgages.
Is investing in Bangkok real estate still recommended?
Real estate investment in Bangkok remains viable—but it now demands caution and a well-targeted strategy.
Risks:
- Persistent oversupply in the high-rise condominium market
- Erosion of public confidence in the safety of high-rise buildings
- Potential further decline in property prices in the high-rise segment
Opportunities:
- Rising demand for low-rise housing presents opportunities for developers and investors in this segment
- Government measures may help stabilize the market in the short term
Conclusion
Although Bangkok's real estate market is currently under pressure, there are medium- to long-term opportunities—particularly in the low-rise housing segment. Potential investors are advised to closely monitor market developments and focus on targeted projects with robust construction standards.