With the Bangkok condominium market stagnant and housing around the capital soaring, Singha Estate has decided to chart an alternative course of action. The developer will continue to freeze new condo launches and instead turn its attention to high-end housing projects until the situation improves.
The Bangkok housing market has proven to be resilient throughout the COVID-19 pandemic. Singha Estate believes its expertise in luxury residences can allow it to successfully expand its interests in the sector. The homebuilder will launch three new housing developments before the end of 2022.
“Housing demand in high-end single detached houses is robust. We are dealing with another two land plots for launch next year. Our target unit prices will be between 10-100 million baht,” Khun Chairath Sivapornpan, Singha Estate Chief Financial Officer, told the Bangkok Post.
Meanwhile, the developer will continue to offload existing condominium inventory before launching new projects in this segment. The hope is condo buyers return once Thailand has reopened to tourists.
“We will relaunch The Extro brand by the end of the year to respond with the country’s reopening plan for foreigners,” Khun Chairath stated. “Thailand remains a top choice for a second home among buyers in Hong Kong and China.”
Bangkok housing market posts strong performance
The Dot Property Group Report: How Has COVID-19 Impacted the Thailand Property Market? found that demand for housing in Bangkok and the surrounding provinces rose by 9.7 percent since the COVID-19 pandemic began in 2020.
In particular, demand for homes in the suburban Bangkok provinces of Samut Prakan, Nonthaburi and Pathum Thani surged by 12.7 percent year-on-year during the COVID-19 pandemic. In Bangkok, housing demand increased by a more modest 3.1 percent.
High-end homes posted a significant increase in demand during the pandemic. The report found that enquiries for suburban Bangkok homes costing THB30 million or more skyrocketed by 55.1 percent. Meanwhile, demand for THB10-30 million homes jumped by 48.9 percent and rose by 33.9 percent for the THB5-10 million price range.