Quakes, floods and politics shake Thailand property in 2025

Thailand’s property market in 2025 came under mounting pressure as a historic earthquake, severe flooding in the South and heightened political volatility combined to undermine buyer confidence and investment sentiment.

Earthquake shifts consumer behaviour

The strongest earthquake in a century on March 28, 2025 triggered widespread anxiety in urban areas and sparked a notable shift in consumer behaviour. Images of evacuations from high-rise buildings and the collapse of the new State Audit Office building became a focal point of public concern, raising questions about construction standards and safety.

The impact on the property sector was felt quickly. Condominium transfers in major cities slowed, particularly for high-rise projects above 30 storeys. Buyers began asking more detailed questions about structural design, earthquake resistance and contractor track records, rather than focusing primarily on price.

Developers also faced rising costs, driven by structural redesigns, repeated inspections and higher building insurance premiums. In the short term, demand rotated towards low-rise housing as some buyers shifted away from tall condominiums.

The episode elevated “safety” into a primary factor in purchasing decisions, overtaking location and amenities as the key consideration for many buyers.

Southern floods highlight location risk

Late in 2025, large-scale flooding across nine southern provinces — with reported damage exceeding 25 billion baht — reinforced the reality that lower-priced locations can carry higher risk.

The floods contributed to higher cancellation rates and delayed transfers for housing estates and low-rise properties in low-lying areas. Land valuations in some locations came under pressure as concerns grew about recurring flood risk.

Developers slowed new project launches in the South, while increasing budgets for flood-prevention systems. Financial institutions also tightened lending criteria in higher-risk areas.

The disaster has pushed “risk maps” into the mainstream, becoming essential information for both homebuyers and investors.

Political turbulence weighs on long-term investment

Political turmoil — including controversy over a leaked audio clip, the removal of a prime minister, the formation of a caretaker administration and an eventual dissolution of parliament — reinforced a wait-and-see mood across the economy.

In the property sector, foreign investors slowed investment in commercial real estate, particularly office buildings and large mixed-use developments. Demand for new office leasing softened amid uncertainty over the economic outlook and government policy.

Developers postponed project launches and shortened investment timelines, while volatility in capital markets raised financing costs for property firms.

In 2025, politics was not merely a backdrop to the market — it became a direct pressure point shaping long-term investment decisions.