Ms. Darunee Rungruengphon, Managing Director of Darwid Property Service Co., Ltd., a specialist in financial institutions' non-performing assets, disclosed that financial institutions and asset management companies are expected to adopt a strategy of cutting prices on their entire portfolio of non-performing assets by about 30% in the fourth quarter of 2026 to clear inventory, rather than investing in cleaning up or renovating properties before sale, which adds cost and risk. She views the 30% across-the-board price cut as not an arbitrary figure, because major asset management companies have already been pricing at cost plus a low margin, roughly 15% below market, and at recent financial expositions they announced discounts of up to 50%, but only on selected properties. The main pressure comes from bad debt that has flooded the market with second-hand real estate. Data from the Bank of Thailand shows that non-performing loans in the commercial banking system in the second quarter of 2026 stood at 534.8 billion baht, or 2.82% of total loans, which is expected to prompt financial institutions to accelerate write-offs and sell bad debt into the market to asset management companies, causing many collateral assets to gradually become non-performing assets in the hands of financial institutions. Meanwhile, demand to buy non-performing assets continues to grow on the back of measures cutting transfer and mortgage registration fees for residential properties priced no more than 7 million baht and the relaxation of loan-to-value criteria allowing 100% borrowing, extended until 30 June 2027. Financial institutions are expected to gradually cut property prices during October to December 2026, which will help narrow the gap between asking prices and actual transaction prices, the reason that more than a hundred thousand properties have been stuck in the system for so long.
Banks/AMCs expected to cut NPA prices ~30% in Q4 2026 to clear inventory, boosting activity in the NPA market Darwid specializes in.
