What To Know
- The findings, from the Thai Real Estate Research and Valuation Centre (AREA), expose a “ghost housing” phenomenon that threatens to destabilize both the property market and the financial system.
- If decisive measures are not taken soon, Thailand’s real estate landscape could face prolonged stagnation, with ghost buildings serving as a stark reminder of unchecked speculation and missed opportunities for national development.
Bangkok Business News: Property Surplus Signals Economic Waste
Thailand’s real estate sector is grappling with a shocking imbalance as over 1.64 million housing units remain unoccupied nationwide, representing a staggering THB 3.45 trillion in idle assets—nearly equal to the nation’s annual budget. The findings, from the Thai Real Estate Research and Valuation Centre (AREA), expose a “ghost housing” phenomenon that threatens to destabilize both the property market and the financial system. Much of this glut stems from over-speculation, especially in the condominium segment, where nearly one in four units stands empty.
Thailand’s property sector reels as more than 1.6 million homes nationwide remain unoccupied, signaling massive economic waste and growing pressure for policy reform.
Image Credit: StockShots
According to this Bangkok Business News report, the Bangkok Metropolitan Region leads the crisis, with approximately 730,000 vacant units—most being new condominiums built for profit-driven speculation rather than genuine residential demand. Analysts warn that without decisive policy action, these empty structures will continue to depreciate and drain economic potential.
Bangkok’s Condo Market at Breaking Point
AREA data reveals that condominiums account for roughly 58% of the vacant homes in Bangkok, underscoring a dangerous oversupply. The city’s vacancy rate for condos now stands at 24.8%, meaning almost one in every four units has no resident. Developers have long favored high-rise condo projects aimed at investors, yet sluggish sales and declining rental yields have left many projects unsold and uninhabited.
Low-cost units, especially those priced below THB 500,000, are facing the highest risks of deterioration due to poor maintenance fee collection and lack of occupancy. Detached homes and townhouses fare better but still reflect the wider instability rippling through the sector.
Experts Call for an Empty Home Tax
To tackle this crisis, AREA researchers propose introducing a targeted Land and Building Tax that specifically penalizes long-term unoccupied housing. Such a measure could:
• Encourage owners to sell or rent their properties faster, helping reduce supply gluts
• Lower market prices, thereby improving affordability for middle-income buyers
• Revitalize neighborhoods by bringing idle properties back into use and circulation
Experts argue that this form of taxation could reinject liquidity into the housing market, stimulate construction aligned with real demand, and discourage speculative hoarding that distorts pricing and availability.
The Hidden Cost of Idle Assets
The cumulative value of Thailand’s unoccupied homes—estimated at THB 3.45 trillion—represents a monumental waste of capital and a significant lost opportunity for economic productivity. Left unaddressed, this surplus may not only erode property values but also weaken banks exposed to mortgage and development loans. Authorities are being urged to act swiftly with reforms that balance market health, consumer access, and sustainable urban growth.
If decisive measures are not taken soon, Thailand’s real estate landscape could face prolonged stagnation, with ghost buildings serving as a stark reminder of unchecked speculation and missed opportunities for national development.
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