Thailand’s condominium market is entering 2026 in a period of quiet but meaningful transition. Recent data shows that while foreign buyer activity is increasing, overall spending per unit is declining, signaling a shift away from speculative investment toward more practical, lifestyle-driven purchases. In 2025, foreign condo transfers rose modestly to 14,899 units, yet total market value dropped by over 10 percent, reflecting a more cautious and value-focused buyer profile.

One of the most notable changes is the evolving mix of international buyers. Chinese purchasers, long the dominant force in the market, are still the largest group by volume but are scaling back, with transaction values falling significantly and a clear move toward smaller, lower-priced units. At the same time, Indian buyers are emerging as a key segment, typically purchasing larger, family-oriented units and spending more on average. This points to a shift toward longer-term residency and genuine end-user demand rather than short-term investment strategies.

At a broader level, the market is finding a new balance. The average condominium size has settled around 41 square meters, suggesting a preference for practical, livable spaces over compact investor units. Pricing has also stabilized, with the “sweet spot” around 4.1 million THB, an indication that buyers are seeking attainable urban living rather than luxury at any cost. Developers are responding by diversifying their target markets, increasingly appealing to buyers from Europe, Russia, and Taiwan to offset softer demand from traditional segments.

Taken together, these trends reflect a market that is rebalancing rather than slowing down. For foreign buyers and sellers, this creates both opportunities and complexities, particularly when navigating ownership structures, regulations, and transaction processes in Thailand. If you are considering a condominium purchase or sale, it would be helpful to speak with experienced advisers. The team at Sun Legal can provide guidance tailored to foreign buyers to help you better understand your options and make informed decisions, contact us info@sunlegal.co.th.

Thailand’s Ministry of Commerce is undertaking a major review of the Foreign Business Act B.E. 2542 (1999), aiming to close long-standing loopholes that have allowed foreign investors to operate in restricted sectors through “nominee” or proxy arrangements. The proposed overhaul—one of the most significant in over 20 years—focuses on clarifying ownership structures and aligning the law more closely with current business practices and international standards, while continuing to protect key domestic industries.

A central issue under review is the use of complex cross-shareholding structures, sometimes referred to as “circular ownership.” These arrangements can obscure who ultimately controls a company, making it difficult for regulators to determine whether a business qualifies as foreign under the law. By tightening definitions and improving transparency, authorities aim to prevent the use of Thai entities as vehicles to mask foreign majority control.

The proposed reforms also introduce tougher enforcement measures. Current penalties have often been viewed as insufficient deterrents, with some operators treating fines as a manageable cost. Under the new approach, authorities are considering stronger consequences, including asset seizure and more clearly defined criminal liability for operating without the required approvals. Additional reporting requirements for foreign-controlled entities are also expected, particularly around management and beneficial ownership.

While the three-tier system of restricted sectors will remain in place, the broader goal is to create a more transparent and predictable environment for both Thai and foreign businesses. For companies with foreign stakeholders or complex ownership structures, this review is a timely reminder to assess compliance and ensure arrangements align with current and anticipated regulations. If your business may be affected, Sun Legal’s advisers can help review your structure and guide you on maintaining compliance as the regulatory landscape evolves.