Prime Property Market To Revive In 2015
According to CBRE Thailand, competition within the Bangkok property market about high-end residential buildings in prime locations is expected to be intense due to intense incoming supply of new luxury condominium projects.
“In the past few years, there has been limited supply of luxury and super-luxury units. 2014 has seen a very limited number of new launches largely due to the political instability in the first half. 2015 will then see pent-up supply being launched in the market,” affirms the report by the real estate agency.
Many factors could actually explain this outlook for 2015:
- First of all, property buyers – foreigners or locals – are still very keen purchasing real estate in the CBD – Downtown area. Prices keep on rising but the demand remains here.
- A combination of both the economy of the Kingdom expected to bounce back in 2015 as well as a slight improvement expected in Europe and USA as well shall benefit to the prime market
- Moreover, stylish and luxurious projects being launched next year in prime areas are thought to be priced between THB200,000 and THB300,000 per sqm, as current land prices have reached 1M Baht per Sq.wah in ultimate prime locations including Wireless Road, Langsuan, and up to Thonglor.
But location is not enough to justify the price. To be considered as “luxurious”, condominiums would have to meet most of its meticulous buyers’ needs and requirements, especially in terms of features and facilities.
“The location must also correspond with the right target market and their requirements. Not every location is suited for a luxury product. Is also likely that re-sale prices of units in older buildings with good management in prime locations will increase substantially,” said Aliwassa Pathnadabutr, Managing Director at CBRE Thailand.