Bangkok’s super-prime residential property market will continue to attract developers, buyers and investors thanks to a lack of suitable locations in the centre of the Thai capital.
According to Knight Frank (Thailand) in its latest release, it expects that the Sukhumvit, Ratchadapisek and Paholyothin areas will provide good performance during 2016.
Frank Khan, Executive Director, Head of Residential for Knight Frank (Thailand) noted the super-prime market segment in Bangkok performed well during 2015, with 1,350 units sold thanks to a limited supply of only 1,814 units. This represented a sold rate of 74.4 percent.
This sector is popular among Thais, Taiwanese, Singaporean-Chinese and Hong Kong-Chinese, who purchased such properties for capital appreciation, Khan said, added that this year it is expected that prices of super-prime condominiums will increase by at least 10 to 15 percent.
In addition the areas near the central business area, such as Ratchada-Rama 9, Petchburi, Paholyothin and Ladprao, which boast access to the mass-transit systems, will continue to be desirable for the overall condominium market, he added.
In the future it is expected that more leasehold condominiums will be launched for sale in the downtown area, due to the fact that most of the remaining land in downtown Bangkok is owned by the government, including the State Railway of Thailand, Chulalongkorn University, the Crown Property Bureau and Port Authority of Thailand, among others.
Khan cautioned those looking at condominium projects along the mass-transit routes, especially a few projects stretching along the Purple Line. Buyers and investors must exercise caution, he said, as there is a large amount of stock. Developers should also be conscious when selecting a location.
On the other hand projects along the Blue, Green, and Orange Lines will have a good future as existing stock is still low, therefore developers will enjoy good prospects if they choose the right location and offer the right product and price.
Khan added that it is worth noting that the Ramkhamhaeng area, where the Orange Line will pass, falls short of proper parcels of land for development.