EIA-approved projects change hands in weak market

Thailand’s property market is seeing a major shift as developers move beyond simply delaying new launches and begin selling land and ready-to-develop projects to preserve liquidity.

Some listed and non-listed property firms are offloading land banks and projects that have already received Environmental Impact Assessment (EIA) approval to larger developers with stronger balance sheets.

The move allows struggling operators to convert sunk costs into cash, while financially stronger players use the slowdown to secure assets for the next market recovery.

Surachet Kongcheep, head of research and consultancy at Cushman & Wakefield Thailand, said the Thai property sector was under heavy pressure from weak purchasing power, high financing costs and broader economic uncertainty.

The slowdown is no longer limited to new project launches, he said. A more significant change is emerging as assets begin to change hands across the industry.

Tighter bank lending for project financing, problems in the corporate bond market and weaker investor confidence have made fundraising more difficult for developers both inside and outside the stock market.

Surachet said many developers that built up land banks aggressively during the market upcycle were now facing slower sales, higher holding costs and a need for liquidity.

As a result, some have decided to sell land and EIA-approved projects to larger operators with the cash and capacity to develop them further.

The trend reflects a natural adjustment in the property sector during a downcycle. Developers with stronger finances and better risk-management capacity are now in a stronger position to acquire land or prepared projects that can be developed more quickly.

Developers put new investment on hold

Data from the Real Estate Information Centre (REIC) underlines the slowdown in new investment. In the first quarter, the number of housing units nationwide receiving land allocation permits fell to 5,783, down 45.7% year on year.

Construction permits also dropped sharply, with approved housing units falling 50.2% to 27,870 units.

Condominiums were the hardest-hit segment. The number of condominium units receiving construction permits fell 71.3%, showing that many developers are delaying high-rise launches and focusing instead on managing existing stock.

Despite the clear contraction on the supply side, demand has not come to a complete halt. Nationwide housing transfers still rose 11.2%, while new mortgage lending increased 11.1%.

However, most of the growth came from homes priced at no more than 3 million baht, a segment driven largely by real demand. The upper-end market, priced from 7.51 million baht and above, showed signs of slowing, with transferred units down 14.9% and transfer value down 16.4%.

This has prompted many developers to adopt a wait-and-see strategy rather than accelerate new investment.

EIA-approved projects become shortcut for growth

Kromchet Vipanpong, chief executive officer of AssetWise Public Company Limited, said one of the company’s key strategies was to expand by acquiring projects from other developers, particularly those that had already gone through design work and received EIA approval.

He said this approach served as a shortcut because it could cut more than a year from the preparation process compared with starting a new development from scratch, including land acquisition, design and permit applications.

Kromchet said some developers in Bangkok had already prepared land and secured permits but now wanted to transfer projects to AssetWise for further development. He described this as a way to reduce both time and risk.

AssetWise is currently in talks over several potential deals and expects to disclose details in the third or fourth quarter of this year. Around two to three deals are under discussion, he said, adding that the model could become an interesting growth path for the company.

Kromchet said the company would be selective and would only pursue projects that matched its expertise. Although the market now offers many opportunities, including both strong assets and more challenging projects, AssetWise would not take on every project presented to it.

He said Bangkok’s property market was opening up new opportunities for developers through the acquisition or takeover of projects that had already been prepared for development.

Land prices start to stabilise

The changing market also marks a shift in competition. In the past, developers competed heavily to buy land. Now, the advantage lies with those that have capital strength and access to quality assets.

A similar pattern is emerging in Phuket, one of the hottest land markets after the Covid-19 pandemic.

Land prices in Phuket stood at about 15 million baht per rai three years ago, before climbing to 40-45 million baht per rai today, more than doubling over the period. However, the market is now beginning to stabilise as major developers have already accumulated enough land and no longer need to keep buying at high prices.

Kromchet said that if few new buyers entered the market, land prices were unlikely to rise further. Some investors who bought land at high prices may also need to sell, bringing more plots back onto the market.

He added that property development is not a daily business cycle. A single project can take about two years to develop before a company is ready to invest in another one. Large land buyers are therefore usually those with available capital and a clear view of future development opportunities.

However, many major developers already hold substantial land banks, reducing the need to keep acquiring new plots as aggressively as in the past.

Kromchet said land prices were now more likely to remain stable than rise significantly. At the same time, more land could return to the market from owners who bought at inflated prices or were unable to proceed with their original development plans.

The trend is being seen in several areas of Thailand. Small and medium-sized developers are turning assets into liquidity, while larger developers are using the slower market to acquire quality sites at more reasonable costs.

For Thailand’s property industry, 2026 may not be a year of aggressive expansion. It is instead shaping up as a year of adjustment. Developers with strong finances can accumulate quality assets at more suitable costs, while those with weaker financial buffers must reduce burdens, protect liquidity and manage risk to survive over the long term.

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