Dusit Thani Positions for 2026 Revenue Peak as Central Park Project Nears Completion

 

Developer reports 95% sales of ultra-luxury residences worth THB 17bn as Bangkok's property market splits between thriving high-end and stagnant mass segments.

 

Thailand's property sector has evolved into a market of stark contrasts, with luxury developments thriving whilst the mass market remains constrained by structural economic challenges.

 

The divergence presents developers with a binary choice: compete in the capital-intensive ultra-luxury segment or navigate the troubled waters of domestic housing—a choice Dusit Thani addressed on Tuesday when announcing its flagship project has secured 17 billion baht in residential sales.

 

Bangkok's premium property market has experienced substantial growth, driven by international buyers, particularly from China and Myanmar, seeking residences in the central business district.

 

The supply of "ultimate class" properties—those exceeding 100 million baht —has expanded from virtually zero units in 2015 to nearly 400 units, demonstrating sustained appetite for ultra-luxury offerings amongst high-net-worth individuals.

 

Conversely, the lower-tier residential market faces considerable headwinds. Thailand's household debt climbed to 104% of GDP in late 2024, severely constraining purchasing power amongst domestic buyers.

 

Mortgage rejection rates for properties below 3 million baht reached 70% in 2024, with projections indicating further deterioration into 2026.

The sector also contends with 1.57 trillion baht in unsold inventory, a credit squeeze affecting developers, and escalating land costs in prime locations.

 

 

Against this challenging backdrop, Dusit Thani has strategically aligned itself with the resilient luxury segment with its 46 billion baht Dusit Central Park mixed-use development in Bangkok's central business district.

 

 

 

Central Park Sales Achievement

At a media briefing on Tuesday, La-ead Kovavisaruch, CEO of Vimarn Suriya Company Limited, the project developer, announced that The Residences at Dusit Central Park has achieved over 95% sales, representing approximately 17,000 million baht in transaction value. Fewer than 10 units remain available, including two large penthouses.

 

Pricing ranges from 400,000 baht per square metre for standard units, with penthouses starting at 500,000 baht per square metre.

 

Notably, 75% of buyers are Thai nationals, suggesting domestic appetite for ultra-luxury branded residences remains robust despite broader economic pressures.

 

The residential component, comprising Dusit Residences and Dusit Parkside, is targeting LEED Gold v4.1 for Residential Multi-Family certification, which would mark the first project in ASEAN to achieve this standard. The development also includes office space, retail components, and Suan Dusit Arun, Thailand's largest rooftop park spanning 7 rai (11,200 square metres).

 

Dusit Thani initiated a fundamental restructuring in 2016, transforming from a traditional hotel operator into a diversified business group. The company's expansion encompasses five divisions: hotels, education, property development, food services, and hospitality-related operations.

After nearly a decade of foundational investment, the 2025-2026 period marks what the company terms its "Unlock Value" phase, during which it anticipates realising returns on its long-term strategic vision.

 

 

Financial Trajectory and 2026 Outlook

Dusit Thani reported a significant fourth-quarter 2024 turnaround, posting net profit of 310 million baht, primarily driven by retail space transfers at Dusit Central Park.

 

For the full year 2024, the company recorded revenue of 11.204 billion baht, a 74.8% year-on-year increase, whilst narrowing its net loss to 237 million baht.

 

Management has projected growth across all business units in 2025, with the hotel business forecast to grow 15-18%, food services 20-25%, and education 10-12%.

 

The critical revenue catalyst will be the commencement of residential unit transfers in late 2025.

 

Industry analysts anticipate 2026 to represent a peak performance year.

 

FSS International Investment Advisory projects core profit of 1.9 billion baht for 2026. TRIS Rating forecasts revenue reaching approximately 20.5 billion baht in 2026, predicated on successful transfer of 70% of residential units.

 

These projections depend on the company's ability to navigate several risk factors, including Thailand's sluggish economic growth, intensifying competition from developments such as One Bangkok, high financial leverage, and execution risks associated with the residential transfer process valued at 16,000-17,000 million baht.

 

 

 

 

Post-2026 Vision

La-ead outlined the company's 2026 priorities at Tuesday's briefing, emphasising completion of The Residences construction and interior fit-out to facilitate ownership transfers under 30-year plus 29.5-year lease agreements.

 

The company is also advancing construction of two tunnel connections to the MRT Silom station, anticipated for completion within the next year.

 

Looking beyond the anticipated 2026 revenue peak, Dusit Thani is developing its next major property project, Dusit Ajara Hua Hin, with construction scheduled to commence in 2026 and completion targeted for 2028.

 

The development is valued at approximately 2 billion baht and will comprise 96 units, suggesting the company intends to replicate the branded residence model in key resort locations including Pattaya and Phuket.

 

The company also plans to list its food business on the Stock Exchange of Thailand and has entered a strategic partnership with Japan's Green House Group to expand regional market penetration, further advancing its diversification strategy.

 

Whether Dusit Thani successfully executes its residential transfers and sustains momentum beyond 2026 will determine if its nine-year diversification strategy delivers the anticipated transformation from hotel operator to integrated property and hospitality group.