Picture courtesy of Thai Rath

 

A staggering 1.64 million homes across Thailand lie empty, creating a huge economic waste valued at 3.45 trillion baht. This figure nearly equals the nation’s yearly budget, according to a Thai Real Estate Research and Valuation Centre (AREA) survey. The "ghost housing" crisis is most severe in Bangkok, with more than 730,000 vacant units largely due to aggressive market speculation.

 

The issue is particularly acute in the condominium market, where the vacancy rate stands at a significant 24.8%. Condominiums make up 58% of all empty homes in Bangkok, with low-cost units especially vulnerable. Condos priced under 500,000 baht have a 21.1% vacancy rate, often leading to quick deterioration due to insufficient maintenance fee collection.

 

Detached houses and townhouses have lower vacancy rates, but the overall excess in housing stock is causing instability. Experts caution that rampant speculation complicates the sale of new developments and may threaten the financial stability of lending institutions. The AREA report estimates the value of these vacant homes at 3.45 trillion baht, a clear economic waste if not properly utilised.

 

Currently, Thai law lacks strong penalties for property owners keeping units vacant. The report proposes a Land and Building Tax to specifically target unoccupied homes as a solution. Such a tax could encourage sales and rentals, increase housing affordability, and stimulate the economy by getting properties back into use, reported The Nation.

 

Bangkok (730,000 units) and the rest of Thailand (900,000 units) share nearly equal numbers of unoccupied homes. Without policy intervention, this vast reserve of idle assets will continue hampering Thailand’s economic potential.

 

Key Takeaways:

 

• Thailand has 1.64 million empty homes valued at 3.45 trillion baht.
• Condominiums in Bangkok have the highest vacancy rates due to speculation.
• A proposed tax on vacant homes could prompt sales and boost the economy.

 

  Adapted by ASEAN Now from The Nation 2025-11-03

 

 

And how will they handle vacant real estate that's been on the market at a reasonable price for a number of years that cannot be sold? 

Typical Thai approach, blast with a shotgun and then ask who's there. 

1 hour ago, webfact said:

Currently, Thai law lacks strong penalties for property owners keeping units vacant.

well, enforce it,

Um, so, are prices falling - whether for purchase or for rent?

This is what can happen when following Chinese initionatives, look no further than the housing in China 

This could be used to flood the country with migrants, drive down wages, increase rents and drive inflation. Western countries are already in soft default due to the government borrowing orgy, Thailand won't be far behind. 

No wonder... It seems that they are building houses everywhere.. a lot of ricefields are being sold to built houses on. But many many aren't sold or rented, and nobody has any idea how many are available..and some houses are very expensive to rent

A mere drop in the ocean to big brothers 65 million + empty homes. 😵‍💫

I have looked at houses to buy and the prices being asked are about 30% above market value!  No one wants to really sell!  In the past past 3 years I have seen landed houses prices in the lower Sukumvit area before Onnut that are stupid like their owners!  

3 hours ago, Badbanker said:

I have looked at houses to buy and the prices being asked are about 30% above market value!  No one wants to really sell!  In the past past 3 years I have seen landed houses prices in the lower Sukumvit area before Onnut that are stupid like their owners!  

I see that's alot of bars for sell in Pattaya.Why? Because its a loosing money industry.Its a reason why the owners selling.But i guess some stupid foreigners will buy anyway because they're gf/wife said it's good business.

4 hours ago, flaming dragon said:

This could be used to flood the country with migrants, drive down wages, increase rents and drive inflation. Western countries are already in soft default due to the government borrowing orgy, Thailand won't be far behind. 

 

That's what Srettha wanted.

5 hours ago, Artisi said:

And how will they handle vacant real estate that's been on the market at a reasonable price for a number of years that cannot be sold?

 

The key word phrase here is 'reasonably priced' - these don't need handling as they sell quickly - all the time.

Overpriced units however almost never sell not for the amount some moron pulled out of their ass anyway - there's just not enough suckers.

A classic example of this is my next door neighbour who attempted to sell their townhouse in Hua Hin for 8 million Baht and only grudgingly reduced the price in many small steps over the last 7 or 8 years down to 4 million Baht - when it sold - quickly for half the delusional amount they were looking for.

They thought it was worth far more than it was because when they first purchased the house they paid double what everyone else had paid for their houses - suckers you see - but they didn't want to admit it.

Right price = sale. Greed = nothing.

Greedy developers and speculators, killing the country.  And when Bangkok sinks .....

 

I live in a housing estate which was constructed 10-13 years ago (finish/start)  There are about 60 dwellings, 2-3 of which are yet to be sold.  On any particular day/week, about 65-75% of dwellings are vacant, and have been for at least a month.  Only about 10% of dwellings are owner-occupied, and a similar percentage are leased out long-term.  Some are short-term (holiday) rentals and some long-term rentals (often taken by foreign retirees to spend a few months a year here).

 

Nearby, a new "luxury" development was launched just over 12 months ago - starting price around Baht 25 million.  To date, no blocks of land have been sold; starting price reduced to Baht 12 million!  Still no takers.

1 hour ago, ukrules said:

 

The key word phrase here is 'reasonably priced' - these don't need handling as they sell quickly - all the time.

Overpriced units however almost never sell not for the amount some moron pulled out of their ass anyway - there's just not enough suckers.

A classic example of this is my next door neighbour who attempted to sell their townhouse in Hua Hin for 8 million Baht and only grudgingly reduced the price in many small steps over the last 7 or 8 years down to 4 million Baht - when it sold - quickly for half the delusional amount they were looking for.

They thought it was worth far more than it was because when they first purchased the house they paid double what everyone else had paid for their houses - suckers you see - but they didn't want to admit it.

Right price = sale. Greed = nothing.

That's part of the problem. It seems that many owners prefer to keep an empty house/flat for years rather than lower their price.

Then Bangkok should move from being number one in the "Global List as Least Affordable City for Renters" – based on local median income – to a more affordable level...

Nice to hear the truth.  Prices are way too high compared to the incomes in Bangkok.  And, the accessibility to look at properties for sale or rent is limited as real estate agents seem like major unprofessional flakes never returning messages are not showing up if you can even get an appointment. 

Aside from the fact that Thais won't drop their prices on units they own, the 800 pound gorilla was always hiding in plain site during Bangkok's condo development orgy. The unasked question is where the money came from to develop these projects in the first place? Money laundering? Property has long been an easy place to launder money. The vacant units might well be 'owned' by some entity - but simply left vacant, because the entity doesn't really care if its occupied - which in fact draws attention to the 'owner(s)'. In any case, if legitimate Thai and foreign purchases made up only half of the building's units, where did the money come from to build/complete the other half?

So what all the above seems to say is that, for mysterious reasons (at least partly criminal), market forces don't work in the property 'market' in Thailand. The effect is that many many people invest in property with little or no expectation that they'll ever resell or otherwise make a profit out of it. Quite why they would do that is beyond my understanding.

 

And the OP then suggests that the government might intervene to force the market to work better thru taxation!

 

A strange topsy-turvy world Thailand, where nothing quite works properly and government intervention often makes things worse.

The other issue of course, as already noted by others, is the price of the condo is out of sync with the rental market. As many long-time expats know, it's actually cheaper to rent a nice place here than it is to buy one. (but many buy anyway, just cause they want one in their name). My point is the ROI of a purchase doesn't sync with the rent one can ask for these places. Even the small cubbyholes that people bought to rent out sit empty, unless they lower their prices to negative return. It's because the developers have flooded the market and few Thais can afford to pay 15,000 - 25,000 baht a month for 25 sqm one bed or studio. So who else is going to rent it? There aren't enough foreigners here, or lower-middle class Thais (with enough income), to rent them. The building I'm in is probably right on that 75% occupancy mark. On my floor, half sit empty and have been that way for a couple of years.

It's not really attractive enough of a deal to invest in property here, as there's too much red tape and nationalist nonsense on ownership laws.

Sure, if you are happily married for a few decades and have bought your wife a house in her name and the relationship is pretty secure, then fine... but other than that, the goal posts keep changing and it's murky as hell on condos and lease times, and who knows what these idiots will dream up with the next change of government... it's a fool's errand to invest in Thailand, unless you are Thai.

4 hours ago, JimHuaHin said:

Greedy developers and speculators, killing the country.  And when Bangkok sinks .....

 

I live in a housing estate which was constructed 10-13 years ago (finish/start)  There are about 60 dwellings, 2-3 of which are yet to be sold.  On any particular day/week, about 65-75% of dwellings are vacant, and have been for at least a month.  Only about 10% of dwellings are owner-occupied, and a similar percentage are leased out long-term.  Some are short-term (holiday) rentals and some long-term rentals (often taken by foreign retirees to spend a few months a year here).

 

Nearby, a new "luxury" development was launched just over 12 months ago - starting price around Baht 25 million.  To date, no blocks of land have been sold; starting price reduced to Baht 12 million!  Still no takers.

I do not know where you are, but it is the same in my rual area of lopburi ,the problem around here is these 2-3story in a row lock ups we have some in the area been empty since they were built, some 10 years ago, I would say 40% remain empty and now they are building what Thais call Moo Bann;s, thse small estates aiming for  20 -30 houses  , they seem to build about 10 -15 then work stops.

The reason is obvious, they cannot sell them too expensive, and the market is flooded, and the no cash flow, build some, sell some; build some more, some get rented out, but the rent can belay cover interest charges on the borrowed money to build them.

And as I see it that is the problem, does anyone not just drive around and see all the empty properties ? and think erm not selling, and the banks do they not have property managers, Somchie goes in and asks for xxxxx million baht to build a Moo Bann, saying I   can sell them for  xxxxxx  million baht, dose  the bank not think what about all the empty properties about not been sold and you what build more.

Again near me they started yet another new development, when will they learn. 

2 hours ago, Sir Dude said:

it's a fool's errand to invest in Thailand, unless you are Thai.

More than a few foreigners, including some big multinational companies and brands, have learned that the hard way.

1 hour ago, kickstart said:

Somchie goes in and asks for xxxxx million baht to build a Moo Bann, saying I   can sell them for  xxxxxx  million baht, dose  the bank not think what about all the empty properties about not been sold and you what build more.

It might be that or a combination of things. For example, aside from rows of rural townhomes that we see throughout the country (a row of empty townhouses that look like they're meant to be a business or service on the ground level, then two floors above of living space) - aside from the banks, they - and thousands of small businesses like coffee shops, little eateries etc., - they  could be financed by Somchai's Thai-Chinese father-in-law who dishes out the guangxi to the inner circle of extended family. Grandpa Wong-whatever-in Thai doesn't ask for a business plan and may not even know what one is, but he agrees to the loan to keep big face as the family Poo-yai. When it fails - mai pen rai.

Properties really struggle to sell here. 

 

But rental wise you can do well ... but then again if it doesn't sell, it's a bizarre investment. The three main safe countries of UK, Australia, and Canada are still the best place to buy property for investment and get a return - with VERY SAFE BANKING AND INTERNATIONAL LAWS. 

12 hours ago, candide said:

That's part of the problem. It seems that many owners prefer to keep an empty house/flat for years rather than lower their price.

This practice is not confined to Thailand. Malaysia is the same as is Vietnam particularly HCMC.

In Vietnam some analysts suggest it's due to owners not wanting to face a loss and thereby a debt to the bank. They prefer simply to pay the interest.

19 hours ago, Artisi said:

And how will they handle vacant real estate that's been on the market at a reasonable price for a number of years that cannot be sold? 

Typical Thai approach, blast with a shotgun and then ask who's there. 

maybe the price isn't reasonable or property build to the wrong specs in the wrong area

21 hours ago, webfact said:

Bangkok (730,000 units)

Here is a good question. What motivates someone to buy and use a home in Bangkok? Are there 730,000 job openings that pay enough to cover monthly payments for a home there? 

 

16 hours ago, norsurin said:

I see that's alot of bars for sell in Pattaya.Why? Because its a loosing money industry.Its a reason why the owners selling.But i guess some stupid foreigners will buy anyway because they're gf/wife said it's good business.

Thank you 'Oh Wise One'

20 hours ago, Badbanker said:

I have looked at houses to buy and the prices being asked are about 30% above market value!  No one wants to really sell!  In the past past 3 years I have seen landed houses prices in the lower Sukumvit area before Onnut that are stupid like their owners!  

Typical thai move, raise prices when there is lower demand. 🙂

22 hours ago, watchcat said:

well, enforce it,

Most of the owners are probably the law makers....