Thailand’s real estate market is facing a serious crisis. From April 2025 to the end of next year, over 266 billion baht in property bonds will come due. Many of these are risky or lack proper ratings, which means there is a strong chance some may not be paid back.
While the earthquake in March shook the country physically, it also rattled the already weak property sector. The economy is under pressure from global slowdown, trade troubles with the United States, and local disasters. As a result, GDP estimates have been cut, and confidence in the market is low.
The government has tried to help by cutting property transfer and mortgage fees and making loan rules easier. But these steps came too late. In the first quarter of this year, property transfers fell by nearly 32 percent, far below targets. The earthquake also caused construction delays and made buyers hesitant, leading banks to tighten credit even more.
Experts warn that if no new capital enters the system, Thailand could face its first major bond default in real estate. This would shake investor trust and possibly impact the broader financial market. Real estate groups have already urged the government to respond quickly.
They are asking for immediate help in the form of soft loans, relaxed lending rules from the Bank of Thailand, and refinancing options to keep the market alive.
Without this support, the cycle will break,buyers will stop buying, developers will stop building, banks will stop lending, and investors will pull out. This is not just a property issue. Real estate is deeply linked to jobs, banking, and spending. If it collapses, the whole economy could suffer.
The real challenge now is speed. Will we act in time, or wait until the damage is done?