By SOMLUCK SRIMALEE
The research found that many developers were launching condominium projects with asking prices of over Bt300,000 per square metre and the new norm seems to be Bt250,000 per square metre.
However, there will be winners and losers in the market, depending on product positioning and pricing.
With a log of options in this segment for buyers to choose from, CBRE is seeing slow sales in many projects. Unsold units in completed projects are being offered at discounted prices to clear the inventory.
“We believe that the winners in [the competition] to sell their luxury condominium projects will not be those projects with the best room layouts or design, but whose that can sell the right lifestyle at the right price,” according to the report.
According to CBRE’s fifth annual Global Living Report, Bangkok is ranked at 33rd out of 35 global survey of the world’s most expensive residential cities, with Hong Kong maintaining its position as the world’s most expensive.
The report profiles the property markets across those 35 key global cities. The results forefront investments in urban areas such as transport infrastructure, connectivity, retail, cultural centres and housing as the key drivers of economic growth.
Jennet Siebrits, head of residential research at CBRE UK, noted the latest report expanded from the previous 29 cities. They include some of the most exciting cities in the world, from emerging technology-driven powerhouses like Shenzhen and Bangkok through more traditional capital cities such as Rome and Lisbon, to rapidly evolving modern urban centres like Dubai and Johannesburg.
“The world’s greatest cities continue to transform to encourage innovation, increase their working and living populations and create new commercial opportunities for businesses,” she said.
The top three most expensive places to buy a residential property are once again in Asia. Hong Kong remains the city with the highest-value residential real estate, with an average property costing Bt39.52 million (US$1.235 million). Singapore remains in second place, averaging Bt27.97 million ($874,372) and Shanghai is third at Bt27.92 million ($872,555). As observed in last year’s report, all these cities have introduced cooling measures to keep prices under control.
Bangkok stands at the 33rd position with an average residential property price at Bt3.4 million ($106,383), followed by Ho Chi Min City at Bt3.29 million ($103,057) and Istanbul at the bottom at Bt3.11 million ($97,396).
The biggest year-on-year growth was experienced in double-digits by Barcelona (16.9 per cent), Dublin (11.6 per cent), Shanghai (11.2 per cent) and Madrid (10.2 per cent). London remains one of the top 10 performing global cities, with the average property price at Bt20.7 million ($646,973) although growth is low at 1.1 per cent.
“House prices increased year on year across 30 out of the 35 cities we looked at, although generally at lower rates than previously,” Siebrits said. “In general, CBRE is seeing house price growth slow across our cities as we move towards the end of a long property cycle. We would expect increasing interest rates to be affecting cities in the US, and various cooling measures affecting the Asia Pacific region, although Shanghai still saw robust growth.”