Strong baht adds pressure on condo market as foreigners delay transfers

A stronger baht is emerging as another major headwind for Thailand’s property sector, particularly the condominium market that relies heavily on foreign high-spending buyers, with signs some are delaying both title transfers and new deals amid exchange-rate uncertainty.

Industry assessments say the baht’s appreciation against major currencies such as the US dollar and the yuan makes Thai condominiums instantly more expensive for foreign investors—even if developers do not raise prices—reducing investment yields, especially for buyers planning to rent out units or hold them for medium- to long-term gains.

Foreign buyers slow down, waiting for a weaker baht

Major developers say foreign buyers—especially from China, Hong Kong and Singapore—are increasingly adopting a “wait and see” approach, delaying transfers to watch the baht’s direction.

This has left developers carrying higher interest costs, while some buyers have sought to postpone final instalments or negotiate additional discounts to offset currency-related costs.

Analysts note that a rapidly strengthening currency often spooks investors more than a gradual depreciation, because it is harder to predict where the currency will peak—prompting investors to delay decisions on high-value assets such as property.

Domestic demand still fragile

The situation is compounding weakness in Thailand’s property market, where domestic purchasing power has been slow to recover amid high household debt, still-tight interest rates and stricter mortgage lending. Some condo locations have seen rising unsold inventory as a result.

Developers are therefore adjusting strategies to focus more on Thai buyers, offering discounts, free stays, longer down-payment plans and even smaller unit sizes to keep prices more affordable and compensate for softer foreign demand.

Volatility expected into early 2026

Analysts expect the baht to remain highly volatile from late 2025 into early 2026, depending on monetary policy in major economies and capital flows. If the baht continues to strengthen, the market may see delays in launching new projects—especially mid- to high-end condos in tourist cities and central business districts.

In the short term, the sector is likely to rely on government stimulus measures, alongside stronger exchange-rate risk management by developers, to prevent a sharper slowdown.

Industry voices

Apa Atthaboonwong, chief executive of Ritchie Place 2002 Plc, told Thansettakij that a baht level of around 31 to the dollar would make Thai property—especially condos—more expensive for foreigners, prompting some to delay decisions, though the high-end segment may be less affected.

Prasert Taedullayasatit, president of the Thai Condominium Association, said the stronger baht is weighing on the sector, particularly foreign high-spending buyers. He added that a recent crackdown on “grey/black” businesses linked to foreigners has already cooled sentiment, and urged the Bank of Thailand to address baht strength, warning it affects not only exports and tourism but also foreign demand in the property market.