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Bangkok Luxury Condominiums – Soaring Land Prices Lead to Era of Super Luxury

By on Aug 19, 2013 in Property News

With the current residential-market dynamics in  Bangkok’s central business district (CBD), soaring land prices have led to the emergence of the “super luxury” market.  Super luxury has no real definition. Some may associate it with hotel branding, although we don’t believe this is always necessary. More often, it is defined by its premium pricing, but truly to achieve super-luxury status, the product must also match up.

Bangkok Luxury Condominiums with prime main-road land prices in Rajdamri, Sukhumvit and early Sathorn achieving in excess of Bt1 million per square wah (Bt250,000 per square metre) and set to rise further, residential developers have no choice but to launch projects at a new price benchmark of over Bt200,000 per square metre to ensure financial feasibility. Looking back at each price barrier of Bt100,000, Bt200,000 and Bt300,000 per square metre, which seemed impossible to achieve in the past, these barriers today have all been broken.

Developing in a prime CBD location today will almost always dictate the product to be defined as super-luxury because of the price tag attached to it. The super-luxury market is exclusively for the affluent and cash-rich. It is a niche that is affordable to only a small segment of the market, so supply will be finite, dictated by both demand and limited availability of suitable development sites. To continue reading The Nation.

Source | The Nation 16 August 2013

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