Why Thailand's Developers Have Started Mass Selling Land Instead of Building
Thailand's property market is undergoing a fundamental restructuring: major developers are no longer simply postponing project launches, but are actively selling off land assets and ready construction permits. Surachet Kongcheep, Head of Research at Cushman & Wakefield Thailand, confirmed that market mechanics have changed - assets are transferring from weak players to companies with strong balance sheets, forming new rules for buyers and investors.
The reason for the sell-offs lies in three factors: declining purchasing power of the population, high cost of financing, and general economic uncertainty. The Land Department of Chonburi Province recorded a 43% decrease in the number of condominium construction permits issued in the first half of 2026 - to 127 permits versus 223 a year earlier. This is the lowest since 2006, when detailed statistics for individual Pattaya areas began.
Scale of Construction Reduction: Figures Across Thailand
Nationwide data confirms the trend. The number of permits for land subdivision for residential development in the first quarter of 2026 fell 45.7% year-on-year - to 5,783 units. Issuance of construction permits decreased 50.2% to 27,870 units. The condominium segment suffered more than others: the decline was 71.3%.
Developers who bought land during the growth period of 2018-2021 faced high holding costs. Maintaining undeveloped plots without cash flow became an unbearable burden. Selling land and projects with already obtained Environmental Impact Assessment (EIA) turned into a way to convert "frozen" assets into liquidity and reduce debt burden.
Who Is Buying the Sold Assets
Buyers include developers with more stable financial positions and investment funds counting on market recovery in 2-3 years. Deals often include not only land but also ready permits, which saves the new owner 8-12 months on approvals. Prices for such packages are reduced by 15-25% from 2023 peak values.
An example is a plot along Sukhumvit Road between BTS Bang Chak and Udom Suk stations in Bangkok. Owners are listing land at 900,000 - 1,000,000 baht per square wah (4 m²). Buyers are willing to pay only 500,000 - 600,000 baht per square wah. The gap in expectations reaches 40-50%, which freezes many deals.
Situation in Pattaya and Chonburi Province: Shortage of Development Land
Pattaya and the Eastern Seaboard demonstrate a paradoxical picture: developers are reducing launches not so much due to excess supply, but rather due to a shortage of suitable plots. In the Pratumnak and Na Jomtien areas - traditional zones for foreign buyers - the number of allocated land plots for residential development decreased by 38% over the past 18 months.
The reason is the exhaustion of available plots with Chanote title (Nor Sor 4), which allows foreigners to buy apartments in condominiums under full ownership. On Pratumnak Hill, fewer than 20 plots ranging from 3 to 8 rai (4,800-12,800 m²) remain suitable for high-rise construction. Most land is already built up or privately owned by Thai families not planning to sell.
The situation in Jomtien is similar. Free beachfront plots are virtually non-existent, and the price of first-line land has risen to 180-220 million baht per rai (approximately 112-137 million baht per hectare). Pattaya City administration introduced additional restrictions on building height in coastal zones - no more than 23 floors for new projects approved after January 2026. This reduces construction profitability for major developers who previously planned towers of 35-40 floors.
How Land Shortage Affects New Construction Prices
The shortage of new projects is already reflected in prices. According to DDproperty agency, the average cost per square meter in new Pratumnak condominiums rose from 89,000 baht at the end of 2025 to 104,000 baht in July 2026 - a growth of 16.8% in seven months. In the secondary market, prices grew more moderately: from 76,000 to 82,000 baht per m² (growth of 7.9%).
In Jomtien, the dynamics are different. The average price in new construction was 92,000 baht/m² in July 2026 versus 84,000 baht/m² in December 2025 (+9.5%). The secondary market showed minimal growth - 68,000 baht/m² versus 66,000 baht/m² (+3%). The difference is explained by excess supply in the secondary market: about 14,600 apartments in completed condominiums are listed for sale - 22% more than a year ago. Average listing time increased from 4.2 to 5.8 months.
Where Developers Are Redirecting Investments
Major developers are shifting focus to Banglamung and Huay Yai districts, where land is cheaper and administrative restrictions are fewer. Sansiri launched Base Central Pattaya project in May 2026 in Nong Prue area (Banglamung) - a condominium with 1,248 apartments priced from 1.89 million baht for a 24 m² studio. The project is located 4.5 km from Jomtien Beach but compensates for the distance with developed internal infrastructure: two pools, co-working space, 800 m² fitness center.
Origin Property focused on Huay Yai - an area 15 km from Pattaya center where land prices are three times lower than on Pratumnak. In June 2026, the company announced the low-rise project Origin Huay Yai Retreat with 384 apartments priced from 2.1 million baht for a 32 m² one-bedroom. The target audience is Thai buyers and long-term tenants working in the Eastern Economic Corridor (EEC) industrial zone.
According to Thai Condominium Association estimates, the share of projects launched outside Pattaya's traditional tourist zone (Pratumnak, Jomtien, Wongamat) grew from 22% in 2025 to 41% in the first half of 2026.
New Financing Requirements Slow Project Launches
Since March 2026, the Bank of Thailand requires developers to pre-sell a minimum of 35% of apartments (previously 25%) before obtaining construction loans. This slows project launches by 4-6 months. Developers are forced either to invest more of their own funds at the start or seek private investors.
At the same time, conditions for buyers have changed. Since April 2026, many developers require full payment or aggressive payment schedules instead of traditional 2-3 year installment plans. This is due to the need to quickly meet the Bank of Thailand's requirement for pre-sales. Buyers with liquid capital gain an advantage: they can negotiate 5-10% discounts and choose the best units in the project.
Uncertainty with Visa Policy Reduces Foreign Interest
The Long-Term Resident Visa (LTR) program, launched in 2022, has not shown expected results: fewer than 18,000 visas issued in four years versus the projected 50,000. Developers who counted on an influx of wealthy foreigners are revising marketing strategies. The focus is shifting to Thai buyers and long-term tenants, which changes project architectural concepts - more two- and three-bedroom apartments, fewer studios.
Alternative Strategy: Long-Term Land Lease Instead of Sale
Cushman & Wakefield recommends landowners consider long-term lease agreements from 10 to 30 years instead of selling assets at a large discount. This approach allows retaining ownership, receiving stable rental income, and waiting for market recovery.
For developers, land lease reduces initial costs and allows launching projects under limited financing conditions. The scheme is especially popular in areas with high land costs - Pratumnak, Wongamat, central Pattaya. Rental rates vary from 3% to 5% annually of the plot's market value.
What This Means for Buyers in Pattaya
For Russian-speaking buyers, the current situation creates both risks and opportunities. The shortage of new projects in Pratumnak and Na Jomtien means that prices in these areas will grow faster than inflation. If you are planning to buy a sea-view apartment for personal residence or tourist rental, postponing the decision is disadvantageous. Apartments in projects that receive construction permits in 2026-2027 will cost 10-15% more than similar ones launched in 2024-2025.
At the same time, the secondary market's attractiveness is growing. Owners of apartments purchased at the 2018-2019 peak are ready to sell at 10-12% discount from the original price. This is a chance to acquire housing in a completed condominium with developed infrastructure at below-market prices. Transaction verification is mandatory: ensure the apartment is free of encumbrances and the condominium complies with the 49% quota for foreign owners.
Areas with the Best Price-to-Prospect Ratio
Buyers with limited budgets should consider Banglamung and Huay Yai areas. Yes, it's farther from the beach, but infrastructure is developing rapidly: shopping centers, international schools, medical clinics are opening. Projects in these zones offer more space for the same money - the difference can reach 30-40%.
If the purchase goal is investment with subsequent resale, focus on projects by major developers (Sansiri, Origin, Pruksa) within 3 km from the beach. Such property is more liquid and easier to sell to both Thais and foreigners. Avoid studios smaller than 24 m² - demand for them is falling, banks are reluctant to issue mortgages for such units.
New Administrative Requirements for Foreign Buyers
Since April 2026, the Chonburi Province Land Office introduced mandatory source of funds verification for all foreign buyers purchasing property over 5 million baht. Bank statements for the past six months and documents confirming the legal origin of money must be provided. The procedure takes 10-15 business days and may delay ownership registration.
Rules for money transfers from abroad have changed. The Bank of Thailand requires that the payment order specify the purpose - "purchase of condominium unit". Without this notation, the receiving bank will not issue the Foreign Exchange Transaction Form (FETF), which is necessary for registering the apartment to a foreigner at the Land Office.
Alternative to Condominiums: Land Purchase and Villa Construction
Some wealthy buyers consider land purchase and villa construction as an alternative to condominiums. A plot of 400-600 m² in Huay Yai or Ban Amphur can be bought for 4-6 million baht. Building a 150-200 m² villa will cost 6-8 million baht. Total cost - 10-14 million baht versus 15-18 million for a comparable villa from a developer.
Restriction: foreigners cannot own land in Thailand under full ownership. Options - long-term land lease for 30 years with renewal right, or purchase through a Thai company. The latter option requires legal support and annual audits.
Forecast for the Next 12-18 Months
The Pattaya and Chonburi Province property market is going through a consolidation phase. Weak players are leaving, strong ones are gaining access to quality assets at reduced prices. Buyers with ready capital are in an advantageous position: they can choose from limited but quality offerings and negotiate discounts.
Recovery of developer activity is expected no earlier than the second half of 2027, when the economic situation stabilizes and the Bank of Thailand softens pre-sale requirements. Until then, the market will remain a buyer's market - with advantages for those who act quickly and have liquid funds.
