The recent earthquake in Thailand has had a surprising impact on the country’s real estate market. With safety and structural resilience now top of mind, buyers and investors are starting to rethink their housing preferences. Many are turning to low-rise homes, shifting away from the once-popular high-rise condos.
Whether you're a homebuyer, real estate investor, or property developer, understanding this market shift is key to making smart decisions. In this blog, we’ll dive into how the earthquake has shaped housing preferences, why low-rise homes are in demand, and what it all means for Thailand’s real estate market.
Table of Contents
1. Impact of the Earthquake on Low-Rise Homes Preferences
The Myanmar earthquake and the tremors it caused in Thailand have had a profound impact on potential homebuyers. Safety has now become a top priority, leading many to reconsider high-rise living.
Safety Concerns with High-Rise Buildings
The earthquake exposed potential vulnerabilities in high-rise buildings, with some experiencing visible cracks or other structural concerns. This has shaken consumer confidence in the ability of these structures to withstand seismic activities.
Buyers are now prioritizing homes they believe offer enhanced safety, particularly family-oriented buyers seeking secure spaces for their loved ones.
Rising Demand for Low-Rise Housing
Low-rise homes, such as detached houses, townhouses, and duplexes, are perceived as safer investments. Their design reduces their susceptibility to earthquake damage compared to multi-story high-rises.
This growing demand is particularly evident among middle- and upper-income buyers seeking reassurance and stability in their housing options.
Renovation and Structural Upgrades
For urban areas like Bangkok, where new low-rise developments are limited due to land scarcity, buyers are turning to older homes.
Renovating and retrofitting these homes with earthquake-resistant materials and designs is becoming a growing trend. Buyers are now demanding practical upgrades, such as seismic dampeners, alongside aesthetic changes.
Polarized Real Estate Market
High-quality high-rise properties developed by reputable firms may still attract certain buyers, particularly those seeking premium urban living. However, buildings with perceived structural risks or those still under construction are seeing reduced interest.
The market is increasingly divided between top-tier high-rises offering luxury and the safer, more stable appeal of low-rise properties.
Stricter Building Standards in Focus
The earthquake has emphasized the urgent need for stricter building codes and improved disaster preparedness. Developers and regulators are now under pressure to ensure buildings can withstand future disasters.
This involves implementing stronger safety measures, enhancing inspection standards, and prioritizing transparency in construction practices. These steps aim to rebuild trust and ensure the long-term resilience of high-rises in Thailand, protecting both lives and investments.
2. Factors Driving the Shift to Low-Rise Housing
While safety concerns remain the biggest factor in this shift, several other influences are shaping the growing preference for low-rise homes.
Confidence and Consumer Perception
Confidence is everything in real estate purchasing decisions, and many buyers now associate high-rises with risk, while low-rise homes evoke a sense of stability and peace of mind, especially for family buyers seeking safe, long-term investments.
Lifestyle and Adaptability
The growing trend of remote work and hybrid models is driving a shift toward larger, more adaptable spaces. Low-rise homes offer flexible layouts and outdoor spaces that can easily be customized for home offices, kids’ play areas, or hobbies.
Exclusivity and Privacy
Low-rise homes often offer greater privacy compared to high-rise condos. Buyers value features such as private gardens, yards, and direct access from their property, which high-rise living typically lacks.
Insurance and Financial Considerations
Earthquake insurance demand has increased significantly among high-rise building owners because higher premiums and liability risks reduce the financial appeal of high-rise properties. Low-rise housing stands out as a safer and more affordable option because it offers predictable costs and reduced disaster liabilities which attracts budget-conscious homebuyers.
3. Implications for Developers and Investors Regarding Preferences for Low-Rise Homes
This consumer-driven shift towards low-rise homes is forcing developers and investors to rethink their strategies.
Adapting to Changing Market Demands
Developers are focusing more on diversifying their portfolios, with increased attention on low-rise townhouses and detached home projects. For investors, placing emphasis on land and low-density developments promises better long-term returns in the current market.
Opportunities in Renovation Projects
Given the scarcity of land in urban areas, investors may find lucrative opportunities in buying and retrofitting dated low-rise properties, especially in cities like Bangkok where upgrading existing homes is becoming a preferred choice.
Advancing Building Quality
For high-rise buildings, providing clear safety certifications and marketing earthquake-resistant technologies will be crucial to maintain their value in the market. Developers investing in enhanced engineering designs and transparent safety standards will remain competitive.
Shifts in Urban Planning
Future urban developments may see a rise in planned communities with low-rise housing that emphasizes safety, green spaces, and mixed-use functionality to meet buyer demands and modern lifestyles.
4. Responding to the Real Estate Shift
The shift in Thailand’s real estate market towards low-rise housing products isn’t just a temporary reaction to an earthquake. It reflects long-term changes in buyer priorities, lifestyle needs, and perceptions of safety.
For buyers, low-rise housing provides security benefits that extend beyond physical protection. The lifestyle of privacy and flexibility together with connectivity defines this living concept. For investors and developers, the analysis demonstrates why builders must adjust their designs to meet customer requirements for durable family-oriented living environments.
The rising demand in the real estate market presents innovative opportunities for professionals to develop new approaches particularly in home renovation and disaster-proof construction and mixed-use development projects. The Thai real estate industry can establish a future that combines safety with intelligence by resolving safety matters and adapting to new priorities.
