Unsold units rise as Thailand’s property market faces profit squeeze

Experts urge developers to focus on value-added strategies as property firms suffer a 27.16% drop in net profit in 2024 due to price cuts and rising costs

In 2024, 38 property developers listed on the Stock Exchange of Thailand (SET) experienced a 27.16% drop in net profit, primarily due to aggressive price strategies aimed at attracting buyers, a real-estate consulting expert said on Wednesday. 

These companies reported total revenue of 313.63 billion baht last year, down 4% year on year, and combined profits of 27.42 billion baht, contracting 27.16% year on year, Praphansak Rakchaiwan, chief executive of LWS Wisdom and Solutions, said.

“This significant contraction in profit is alarming, as it signifies the increasing hardships these companies face amid rising operational costs,” he said. 

He explained that in a market with slowing purchasing power,  real estate developers often resort to price reductions and promotions to stimulate sales, which while attracting buyers, can erode profit margins. 

Praphansak added that most developers also employed liquidity management strategies to navigate the challenging market conditions last year. The average profit margin in the real estate sector for 2024 was 8.74%, down from 11.52% in the previous year.



The value of unsold units and units under development of these 38 companies also increased 7.5% year on year to 716.56 billion baht, he said. 

Among them, Sansiri Plc has the highest value of unsold and under-development units at 101.58 billion baht. The company also reported the highest revenue in 2024 at 39.20 billion baht, up 2.03% year on year and dominating over 75% of the market share. 

Meanwhile, Supalai Plc earned the highest net profit at 6.18 billion baht, up 3.34% year on year.

“Despite an overall decline in profits, opportunities to recover in the real estate market exist if the strategies are properly adjusted,” Praphansak said. “This includes focusing on effective liquidity management, along with finding ways to add value to projects under development.”

He warned that increasing marketing campaigns may not be a long-term solution if they fail to improve profit margins. Real estate companies must find more sustainable ways to manage costs and add value for customers to meet the rapidly changing market demands, Praphansak advised.

(2025/03/05-00:00)