The super-prime condominium market in Bangkok shows what one real estate firm said is a “promising future”.
Knight Frank Thailand has revealed that the super prime condominium market in Bangkok is becoming one of the most burgeoning property segments, attracting local and international ultra-high net worth individuals (UHNWI) who are buying second homes. With demand for super-prime condominiums continuing to skyrocket, prices are unquestionably increasing by leaps and bounds, according to the firm.
Frank Khan, Executive Director, Head of Residential Department, Knight Frank Thailand, noted that the super-prime condominium segment in Bangkok has grown dramatically over the past three to five years. This “super” bracket was first introduced to Thailand in 2008 with the launch of te Sukhothai Residences, located on Sathorn Road, as the first super prime development.
Khan revealed average selling prices of super-luxury condominiums in Bangkok’s central business district (CBD) areas has climbed from THB 184,000 per sqm to nearly THB 400,000 per sqm by mid-2015. He added that the continuous price growth is due mainly to the non-availability of land for the development of high-rise residential projects in each and every CBD area, be it in Sukhumvit, Rajadamri, Silom, Sathorn, Saladaeng, Langsuan, Ploenchit, Chitlom, or Wireless Road.
“So, whatever project is coming in these areas, it would have to be high-end, superb, super prime condominiums, making the prices extremely high,” Khan.
At present the super-prime segment represents one percent of Bangkok’s condominium market, with a total of eight super-prime condominium projects across Bangkok’s CBD, according to Knight Frank Research.
The current supply of super-prime condominiums in Bangkok stands at 1,541 units, compared to 196 units in 2008. Central Lumpini outperformed other CBD areas in terms of supply, contributing 33 percent or 508 units out of 1,541 units, followed by Sathorn, accounting for 25 percent, Sukhumvit (22 percent) and then Riverside (20 percent).
Super-prime condominiums are sold as ‘lifestyle products’ with large and full services equivalent to, or provided by, five- or six-star hotels, said Khan.
They are highly luxurious and spacious in size with a minimum price per unit being sold at THB 15 million to THB 20 million. Units usually range from two-bedroom to three-bedroom. There was a one-bedroom unit launched between 2013 and 2014 but it was as considerably spacious as other types.
Khan concluded that Bangkok’s super-prime condominium market will not be affected by the advent of the ASEAN Economic Community (AEC) in late 2015.
AEC will, fortunately, drive growth in the rental segment thanks to an influx of human resources within the region and relocating themselves to Bangkok and looking to rent ‘B+’ to ‘A’-grade apartments.
