The hotel and industrial estate sectors are expected to remain robust this year, driven by foreign markets, while the residential and office sectors continue to slow due to weak domestic demand and excess supply, according to property consultancy CBRE Thailand.
Roongrat Veeraparkkaroon, managing director of CBRE Thailand, said the property recovery this year will vary by sector, led by hotels and industrial estates.
"The hotel and industrial estate sectors have recorded strong growth since last year, benefiting from government initiatives that have attracted both investment and foreign tourists," she said. "This trend is expected to continue into 2025."
Chotika Tungsirisurp, head of research and consulting, said foreign tourist arrivals, which rebounded to 35.5 million last year, are projected to return to 40 million in 2025.
Bangkok's hotel performance is expected to improve further, with the average occupancy rate rising to 77%, an average daily rate of 4,300 baht, and revenue per available room of 3,315 baht.
These are increases from 74.8%, 4,201 baht and 3,157 baht, respectively, recorded last year, she said.
For the industrial estate sector, presales of serviced industrial land plots last year exceeded transfers by 87.5%, with 4,500 rai sold compared with 2,400 rai transferred. This was an increase from 66% in 2023, when 3,500 rai was sold and 2,100 rai transferred.
This trend has also driven demand from second- and third-tier suppliers for ready-built factories, with average occupancy increasing to 90.5% from 88% in 2023, and is expected to rise further to 91.2% this year.
"The retail sector was particularly active and dynamic last year, with strong interest from foreign brands, especially from Japan, China and Europe, particularly in the food and beverage segment," said Ms Chotika.
Among new overseas market entries into Thailand, Japan accounted for the largest share at 29%, followed by China and Europe at 17% each.
By category, coffee shops and restaurants led the way, making up 60% of new entries, followed by fashion and accessories (29%), furniture and home decoration (6%), entertainment (3%), and beauty and wellness (3%).
Ms Chotika said the office sector will see a further decline in occupancy this year, dropping to 78% from 81% in 2024.
The key factor is an influx of new supply in recent years, which has led to a consecutive fall in occupancy rates from a high of 93% in 2019.
Artitaya Kasemlawan, head of residential sales projects, said new condo supply in Bangkok might hit a four-year low, with just 24,000 units launched this year, down from 28,532 units last year.
"Many developers have put new condo launches in Bangkok on hold, with some taking a wait-and-see approach over the past two years due to unfavourable market sentiment," said Ms Artitaya. "This year's new supply must offer strong value for money to be sellable."