Why Thai developers are selling land and ready projects — what buyers should know

Thailand property shift: land and EIA-approved projects are changing hands

The Thailand property market is moving from a pause in launches to outright asset sales, and that change matters for buyers and investors. Developers strapped for cash are now selling landbank and projects that have already received Environmental Impact Assessment (EIA) approval to bigger rivals with stronger balance sheets. Our analysis shows this is not a temporary blip but a structural reordering of competition in Thai real estate.

Quick take

• Developers are converting sunk costs into liquidity by selling land and EIA-approved projects.
• Larger, financially stronger companies are buying assets to accelerate future growth.
• Official data points to a sharp contraction in new permits, especially for condominiums, while demand for affordable housing persists.

This article explains who is selling and buying, the numbers behind the shift, where opportunities and risks lie for investors and homebuyers, and how to approach deals that involve landbank or EIA-approved projects.

Market snapshot: the data that matters now

Official statistics from the Real Estate Information Centre (REIC) underline the depth of the slowdown in new construction and permitting:

• Land allocation permits for housing fell to 5,783 units in Q1, a decline of 45.7% year-on-year.
• Construction permits for housing dropped 50.2%, to 27,870 approved units.
• The condominium segment was hit the hardest: construction permits for condos plunged 71.3%.
• On the demand side, housing transfers nationwide rose 11.2% and new mortgage lending increased 11.1%, but most of that growth is concentrated in homes priced at up to 3 million baht.
• The upper-end market (from 7.51 million baht and above) is slowing: transferred units down 14.9% and transfer value down 16.4%.

Cushman & Wakefield Thailand’s head of research, Surachet Kongcheep, attributes the pressure to weak purchasing power, high financing costs, and economic uncertainty. The net result is fewer new launches, higher holding costs for landbank, and more developers needing cash.

Why developers are selling: cash, costs and capital markets

The reasons behind the sell-offs are straightforward when you follow the cash:

• Banks have tightened project financing, reducing the availability of loans for new or ongoing developments.
• The corporate bond market is not an easy alternative for many developers, limiting non-bank fundraising.
• Weak buyer demand, especially in mid-to-high-end segments, leaves developers holding unsold inventory and paying carrying costs on land and approvals.

Developers who amassed landbank during the upcycle now face a drag: holding costs, interest expenses, and the risk that assets lose relative value while sales stall. Selling partially developed projects or land parcels that already have EIA approval can convert non-performing assets into working capital. For some, that may be the difference between continuing as a developer and heading toward restructuring.

Who is buying: the consolidators and their strategies

Bigger players with stronger balance sheets are stepping in. AssetWise Public Co Ltd is one example: its CEO, Kromchet Vipanpong, said the company targets projects that have completed design and secured EIA approval because they can cut more than a year from pre-development lead time.

Why buyers like AssetWise are active now:

• Acquiring EIA-approved or near-ready projects accelerates time-to-market and reduces pre-development risk.
• Consolidators can absorb holding costs and benefit from economies of scale in marketing and construction.
• They can pick and choose assets that match their operational expertise and geographic strengths.

This pattern favors buyers with liquidity and disciplined underwriting. Our takeaway: acquisitions are not a sign of reckless expansion by buyers but a defensive, selective growth tactic.

Regional hotspots and price moves: Phuket, Bangkok and beyond

The trend is visible in market pockets where recovery was strongest after the pandemic. Phuket is an illustrative case.

• The report cites land prices that rose from about 15 million baht per rai (1,600 sq m) three years ago to 40–45 million baht today; the original report included an apparent unit inconsistency in its figures. Regardless of the reporting quirk, prices in prime Phuket locations more than doubled during the post-Covid rebound.

What that means:

• Sellers in high-demand locations can monetize gains by offloading parcels at attractive prices.
• Buyers must be selective: paying for overpriced legacy parcels increases execution risk if demand softens again.

In Bangkok, the downturn in condominiums is stark. With condominium construction permits down 71.3%, there will be fewer high-rise completions in the next 18–24 months compared with the peak development cycle. That affects both supply expectations and valuation models for developers and investors.

What this means for buyers and investors

For different market participants, the implications vary:

• Homebuyers: If you seek mid-market housing (sub-3 million baht), inventory and mortgage availability are supporting transactions. Be alert for developers selling partially finished projects; verify escrow protections and progress guarantees.

• Investors (buy-to-let or capital gains): Large players buying EIA-approved projects can speed development and reduce time to rental yield. However, watch for concentration risk: multiple projects in the same submarket can saturate demand.

• Institutional investors and funds: This is a consolidation play.