High-End and Luxury Condominiums Market Hot
The number of new residential units to be launched in 2015 in Bangkok CBD is expected to increase by 64% to 12,000 units in total, in which 70% will consist in high-end and luxury condominiums only.
In only comparing Q1 2014 and Q1 2015, over 2,000 units were launched in Bangkok CBD (62% increase quarter-on-quarter) among which 60% were high-end/luxury projects.
Condominiums could be categorized as follows:
- High-end units are priced between THB120,000 and THB200,000 per SQM
- Luxury units are priced between THB200,000 and THB300,000 per SQM
- Super Luxury units are priced THB300,000+ per SQM
These quality condominium projects are especially popular among foreign investors such as Hong Kong, Singapore or Taiwan as their demand for luxury projects is solid but prices in their home countries sometimes exceed 1M Baht per SQM and it has become sometimes impossible for them to afford a condo there.
According to Aliwassa Pathnadabutr, Managing Director at CBRE Thailand, said: “High-end and luxury supply is considerably less than in the mass market, but the absorption rate is relatively high at more than 80%.”