Is Sustainable Construction Still Optional in Thailand?

partnership21
2 hours ago
4 min read

A Boardroom Battle at The Green Real Estate 2026

Developers say sustainability costs too much.

Designers say timelines dictate reality.

Investors say green assets perform better.

So who’s telling the truth?

At The Green Real Estate 2026, we’re putting this uncomfortable question on the table:

Is it still reasonable to treat sustainable construction as optional in Thailand today?

This is not a theoretical discussion. It’s a real debate shaped by rising construction costs, climate risk, investor pressure, tenant expectations, and the daily decisions made in live projects across Thailand’s building sector.

The Boardroom Battle brings together four voices from design, development, and market analysis to challenge assumptions and expose what actually drives sustainability decisions in Thailand’s building sector.

Expect conflicting perspectives on where decisions are really made, when sustainability gets compromised, and who has the power to influence those outcomes. The audience will participate in a live vote before and after the debate, offering a real-time snapshot of how perspectives may evolve through the discussion.

The Decisions That Shape Buildings Before Construction Begins

From the design side, Toon Virochpoka, Co-CEO of Design 103 International, will challenge the idea that sustainability is always cut because it is unaffordable.

Design firms hold more influence than many admit. They decide which materials are specified, which systems are proposed, and which sustainability measures survive value engineering. These decisions happen months before ground breaks and determine whether buildings can manage energy costs, adapt to climate risks, or comply with future regulations.

With hands-on experience across multiple project types in Thailand, Toon understands where sustainability is genuinely constrained and where it is quietly deprioritised for convenience.

A Residential Developer Who Put Sustainability on the Balance Sheet

Bringing the residential development perspective, Blake Olafson, Founder and Managing Director of HOMA, enters the debate with proof, not promises.

Blake integrated sustainability into his projects as a core business strategy long before it was fashionable or required. That decision unlocked UOB Thailand’s 675 million baht green loan, the first of its kind for residential development.

At the Boardroom Battle, Blake will explore whether sustainability is becoming increasingly unavoidable, as financing requirements, performance data, and long-term asset value considerations play a growing role in building sector decisions.

Industrial Buildings Under Global ESG Pressure

From the industrial segment, Sally Teh, Executive Vice President at Frasers Property Industrial, will address the pressure developers face from global tenants and ESG-driven supply chains.

In logistics and industrial buildings, sustainability choices now directly affect leasing decisions, operating costs, and compliance with multinational occupier requirements. At the same time, developers face rising costs, tighter yields, and shorter delivery timelines.

Sally will examine how these trade-offs are being navigated in real projects, and whether sustainability is becoming a key factor in leasing performance and long-term asset value.

The Market Data Behind the Debate

Completing the panel is Karlo Pobre, Deputy Managing Director at Colliers, bringing market evidence from Thailand’s hospitality and commercial real estate sectors.

Hotels (Thailand)

Only a small fraction of Thailand’s hotels hold international green certifications, less than 1%, leaving most assets exposed to rising ESG expectations from investors, lenders, and operators.

Yet, 73% of global travelers prefer sustainable accommodations according to the Booking.com Sustainable Travel Report.

Academic research, including studies from Cornell’s School of Hotel Administration and global literature reviews, shows that green-certified hotels achieve approximately 4 to 6% higher room rates on average, along with stronger RevPAR performance.

Offices (Bangkok)

Over 70% of new prime office leases were signed in green buildings, although they represent only 39% of total stock, according to JLL Thailand in December 2022.

Certified buildings achieve rental premiums of 4 to 11% versus non-certified peers. Prime CBD green buildings command up to a 37% gross rent premium, according to JLL Q3 2025 research.

More than 90% of new supply since 2019 is ESG compliant, with nearly all upcoming projects targeting LEED certification, based on Bangkok Post and Krungsri Research.

Industrial and Overall Market Context

Thailand has more than 200 industrial estates and thousands of factories, yet relatively few facilities hold international green certifications despite increasing ESG requirements from multinational tenants and supply chains.

Nationwide, Thailand has approximately 450 LEED-certified projects as of 2024. A decade ago, the total number was still in the single digits, underscoring how recent and accelerated the adoption of green standards has been.

At the regional level, the Asia-Pacific green building market is projected to grow at a compound annual growth rate of approximately 8% to 12% between 2024 and 2030 and beyond, signaling that sustainability is moving from niche positioning to mainstream market expectation.

The gap between certified and non-certified assets is widening, turning sustainability from a branding choice into a financial one.

Karlo will unpack what the data is already telling us and what it means for future developments in the building sector.