Thailand's leading real estate agent

Luxury Condo Demand Insatiable

By on Sep 20, 2017 in Residential

Developers can’t build high-end condominiums fast enough, as real buyers and investors gambling on the scarcity of inner city land gobble up units.

High-end condominium prices keep soaring as plots of land in prime locations become scarcer and many developers diversify into the luxury segment to escape the slowdown in the lower-end market.

Aliwassa Pathnadabutr, managing director of the property consultant CBRE Thailand, said developers have shifted to the upper-end segment since last year as demand and purchasing power is stronger there than in the lower-end market.

“When developers turn to the high-end segment, the location must be in the inner city,” she said. “Their demand for limited land is strong, pushing up the price.”

According to CBRE market research, high-end condos launched in the first five months this year were valued at 4.34 billion baht, up 16% from 3.75 billion in the same period last year.

Average price per square metre increased by 24% to 292,800 baht from 235,429 baht. However, the number of units and projects dropped from 1,884 units to 955 units and from seven to five projects.

The highest average price was 580,000 baht per sqm at 98 Wireless, a super-luxury project developed by Sansiri Plc. Beatniq, a luxury condo on Sukhumvit Soi 32 developed by SC Asset Corporation Plc, averaged 280,000 baht per sqm on the other end of the high-end spectrum.

Vittorio Sukhumvit condo sale, Bangkok

Vittorio, a completed super-luxury condo project on Sukhumvit Soi 39

Luxury condo demand is coming from those with high purchasing power who buy a unit, usually as a second home, to stay in the inner city. It is also driven by overseas buyers, mainly from Hong Kong, Ms. Aliwassa said.

According to Global Property Guide and Sansiri, the average condo in the UK costs 1.09 million baht per sqm; in Hong Kong it is 901,683 baht; in the US it is 630,346 baht; in Japan it is 488,292 baht; in Singapore it is 485,572 baht; and in Taiwan 251,192 baht. Meanwhile, the average price for all condos in Thailand was only 200,000 baht.

Sansiri and Knight Frank’s Wealth Report 2016 noted the 70 million baht for a 121-sqm unit at 98 Wireless can buy a space of 40 sqm in Hong Kong, 52 sqm in New York, 60 sqm in London, 86 sqm in Singapore and 116 sqm in Beijing.

The selling price of a penthouse at 98 Wireless is 666,666 baht per sqm, a 65% increase from the highest-priced penthouse in 2011 at The Sukhothai Residences.

At Marque Sukhumvit, one of the company’s luxury condo projects on Sukhumvit Soi 39, the sales price this year rose to 340,000 baht per sqm on average from 230,000 baht three years ago during the launch.

In July this year AP launched Vittorio, a completed super-luxury condo project worth 3.5 billion baht on a 1.29-rai plot on Sukhumvit Soi 39. It has 88 units priced at 350,000 baht per sqm on average, or between 28 million and 107 million baht a unit.

Souce: Bangkok Post – 19 September 2017

No comment





 

emailSubscribe Via Email

Privacy guaranteed. We will not share your information.

Follow Me on Twitter

Follow Me on Facebook

Subscribe via RSS Feed

Copyright © 2020 CBRE (Thailand) Co., Ltd. All Rights Reserved.