CBRE Expects Demand to Stay Strong

April 1, 2022

Artitaya Kasemlawan, head of residential sales projects for CBRE Thailand

Property consultant CBRE Thailand aims to secure 13.8 billion baht in residential sales in 2022, a year-on-year growth of 15%, with luxury low-rise houses and resort homes the key drivers.

Artitaya Kasemlawan, head of residential sales projects for CBRE, said rising demand for high-priced low-rise houses and resort homes started in 2020 and will continue this year after sales in these two segments soared during the pandemic.

"Covid-19 has changed homebuyer behaviour," she said. "Most customers seek more space as they have to spend more time at home, doing various activities with families and also working."

Sales of low-rise houses in 2021 also soared 69% year-on-year, seeing three years of consecutive growth.

Combined sales of low-rise houses and resort homes surged from 14% in 2019 to 56.7% in 2020 and 58% in 2022.

Prior to the pandemic, the condo market was active and made up 85.9% of CBRE's total property sales in 2019, before facing a sharp decline to 43.2% in 2020 and 42% last year, said Ms Artitaya.

"The sales reflect a big change in consumer's behaviour as more living spaces are needed," she said.

The best-seller locations for low-rise houses last year were Krungthep Kreetha, Ratchaphruek and Rama IX roads.

For resort homes, Hua Hin, Pattaya and Si Racha were among the top destinations.

The average price of a single detached house sold by CBRE last year was 56 million baht a unit -- a high level indicating strong demand in inner city areas, said Ms Artitaya.

The highest sales price was 267 million baht, compared with 195 million baht during 2018-20.

"There has been demand from the Chinese for high-end low-rise houses priced 30-150 million baht in downtown areas near business districts with easy access to Suvarnabhumi International Airport," Ms Artitaya said.

Some of them were investors who were conducting or seeking business in Thailand. They looked for ultra-luxury fully furnished houses priced over 100 million baht, equipped with a spacious garden, large rooms, several parking spaces and a private swimming pool.

"Foreign buyers had stronger demand to buy a house. All the foreign buyers who were CBRE clients were businessmen who had already set up a company in Thailand. They purchased freehold property through their company," she said.

Ms Artitaya said the key to selling houses with land attached was to offer a long lease term, which can make Thailand competitive compared to other countries, and ensuring those properties are worth the price tag.