The luxury sector of Bangkok’s residential market has performed well over 2016.
Thai investors are playing a pivotal role in the drive for luxury property in Bangkok’s residential market. Accounting for 85 percent of purchasers within this sector of the market in 2016 according to real estate firm CBRE.
This year has seen a succession of launches of high-profile residential developments plus record prices have also been achieved at this upper end of the market. This has generated attention as this segment of purchasers are not affected by the increasing difficulties in obtaining a mortgage to purchase a property. The luxury market accounts for condominiums that achieve between THB 200,000 to 299,999 per square metre or the whole unit costing in excess of THB 10 million.
The average price for 2016 has increased 4.7 percent if compared to the previous year, currently stands at THB 219,000 per square metre. Properties in Sukhumvit, Sathorn and Central Lumphini continue to entice in purchasers due to their prime location situated amongst Bangkok’s amenities and attractions.
Additionally, the super luxury sector (properties that achieve over THB 300,000 per square metre or cost more than THB 20 million per unit) has seen significant traction as well. 13 projects have achieved sales at this level, and prestigious residential developments 185 Rajadamri and The Ritz-Carlton Residences have individual unit transactions recorded over THB 400,000 per square metre. This alone illustrates the appetite for this end of the market and CBRE also noted that Marque was the first project on Sukhumvit to achieve a sale in this bracket too.
The demand for luxury property is forecast to continue into 2017. Partly as there has been a slowdown of supply of this part of the market that triggers the supply and demand mechanism in favour of the developers.