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Upscale Housing Market Stays Robust as Economy Turns Corner

By on Nov 09, 2017 in Residential

The luxury residential market remains healthy amid strong demand and limited supply, while the economic recovery and government and consumer spending have restored confidence, says property consultancy CBRE Thailand.

Managing director Aliwassa Pathnadabutr said the market for luxury condos and units in the central business district has shown positive signs in the current quarter as consumers develop confidence in economic prospects.

“Market sentiment has recovered in the fourth quarter,” Ms Aliwassa said. “Investors have more confidence in buying a high-end condominium unit.”

She predicted no oversupply in the luxury residential market during the period.

According to CBRE research, 7,870 condo units were newly launched in downtown areas during the first nine months of the year. Fewer than 1,000 units are scheduled for launch in the fourth quarter.

For all of 2017, new condo supply in downtown will match last year’s amount, CBRE said.

In the super-luxury segment, the amount of new condo supply each year is shy of 1,000 units. The top five locations attracting investment buyers are Ratchadamri, Phloenchit, Chidlom, Asok and Thong Lor.

Nalinrat Chareonsuphong, managing director of Nexus Property Marketing Co, said new demand for luxury single houses comes from business owners aged 35 and up who want a unique housing design.

“These people are looking for a potential area and a product that meets their requirements,” Mrs Nalinrat said. “They are willing to spend for a unit that meets their needs despite a high price.”

Due to rising land costs, a new trend in high-end housing is towards smaller land plots but offering a height of three or four storeys to accommodate several generations of one family.

Sahachart Tanyamasrat, managing director of property developer Krungthep Pattana CMS Co, said demand for single houses in the high-end segment in Kaset Nawamin is strong because the area is popular with business owners and executives.

The company has launched The Primary V, a high-end housing project worth 800 million baht. It will occupy a five-rai site on Prasert Manukitch Soi 29, with 20 units on plots sized from 53.8 square wah and priced from 25 million baht.

“Most of the existing supply in the high-end single housing segment in the location had only two storeys,” Mr Sahachart said. “The location will have many new projects from large developers launched next year.”

As a smaller developer, Krungthep Pattana CMS relies on flexibility and customer care to compete with larger rivals, he said.

Source: Bangkok Post – 8 November 2017

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