Thai property developer Charn Issara Development is urging the government to introduce new economic stimulus measures, citing persistently weak domestic demand and broader economic stagnation over the past two years.
While foreign investment has kept the luxury real estate segment afloat, the broader Thai property market continues to struggle as local buyers face increasing financial pressure, according to Charn Issara Development. The company, listed on the Stock Exchange of Thailand, believes large-scale infrastructure projects could help restore investor confidence and stimulate growth.
Chief executive Songkran Issara pointed to proposals such as the Land Bridge and Kra Canal projects as potential catalysts. Though the Land Bridge initiative may take a decade to complete, it is seen as a long-term driver for regional economic development. The proposed canal across the Kra Isthmus, meanwhile, could be executed through a concession model to attract private investment, particularly from countries such as China.
Songkran noted that Thailand’s minimal GDP growth over the past two years has adversely impacted multiple sectors. He warned that the second half of 2025 may bring further challenges due to ongoing uncertainties in global policy and domestic political instability.
With mounting household debt and a declining workforce, local demand in the property sector has been especially weak among middle- and lower-income buyers. Demographic shifts toward an ageing population have also contributed to reduced housing demand.
Despite these headwinds, the high-end market segment continues to show resilience, driven largely by foreign buyers. Charn Issara has already sold a unit at The Sky Series, its latest luxury development at Sri Panwa Phuket, which features four pool villas priced from 200 million baht. Two units remain available.
The firm also plans to launch Issara Boundary, a new upscale residential project in Bangkok’s Krungthep Kreetha area by the end of the year. The development will span a 40-rai site with prices starting at 80 million baht.
Songkran emphasized that in the current environment, property developers need to adopt cautious financial strategies, prioritize cash flow, and be selective with new project launches. He added that the luxury market segment is best positioned to withstand the ongoing slowdown.
The company shared its outlook following a series of new reports on declining property sentiment. Several other senior figures were present during the remarks.
