CBRE Thailand has seen a rise in top-end transactions in Bangkok’s prime locations.
Recent data released from CBRE Thailand has identified an increase in purchasers seeking high-end properties in central Bangkok. 79 percent of CBRE’s sales between October 2015 and April 2016 were for properties in the THB 10 to 40 million price bracket, with the remaining 27 percent for properties over THB 40 million; a 7 percent increase for top-end properties compared to the same period for the previous year.
The rising cost of condominiums in prime Bangkok locations has risen to reflect the increased land prices, but this has not deterred purchasers as property continues to be seen as a valuable asset. Ms Aliwassa Pathnadabutr, managing director of CBRE Thailand, says, “Our cash-rich buyers see top-end luxury properties in downtown locations as an investment safe haven where they can park their money in the long-term.”
End users overtaking buy-to-let investors
Purchasers are carefully considering their options before making their investment. Buy-to-let landlords are choosing buildings with fewer units to limit their competition, but unlike 2015 when the market was dominated by buy-to-let investors, in 2016 so far they only make up 31 percent of transactions, a decrease of 27 percent from the previous year. End users are now leading the way and developers are responding by subsequently building condominiums to a higher standard of finish resulting in 55 percent of all new condominiums launched in the first quarter of 2016 being high-end.
Sukhumvit and in and around Lumphini remain as sought after areas due to their location and amenities on hand. However, proximity to the BTS Skytrain is of the utmost concern coupled with the overall finish of the product.