Thailand’s super-ultra luxury property sector continues upward trajectory
Thailand’s super-ultra luxurious real-estate sector will continue to grow for the foreseeable future, says Raimon Land’s CEO Korn Narongdej.
He made the comment on Tuesday while officially opening “Tait Sathorn 12” – a super-prime condominium in Sathorn. Up to 97% of the condo’s units have reportedly been bought up.
Despite challenges such as high inflation, increased living costs, economic deceleration and geopolitical uncertainty, the upper echelons of society are usually unaffected and continue spending at or above their usual rate, Korn said.
“When deciding to buy a premium product, wealthy customers can make decisions without being stuck with any conditions,” he added.
He also attributed the high-end property sector’s growth to foreigners seeking second homes in Thailand.
The kingdom’s attributes such as friendly people, religious tolerance, delicious cuisine and rich culture make it an attractive destination for wealthy investors, he added.
As for the latest ultra-luxurious condominium project, Korn said more than 40% of the units had been snapped up by foreigners.
The top nationalities purchasing units at Tait Sathorn 12 are Chinese, Singaporeans, Taiwanese and Australians.
Of them, 60% were bought for personal use, while the rest were for investment purposes.
“The rate of transfer was very fast, with about 1.8 billion baht worth of units transferred since August. This has surpassed more than half of the company’s initial target,” he said.
Raimon Land’s sales target this year is set at 2.6 billion baht.
The surge in sales is also driven by a growing interest in real estate as an investment option, Korn said.
“Each of our projects can be rented out with 5-6% returns yearly, while the resale price continues appreciating,” he said. “Tait Sathorn 12 is our third project in this area after ‘The Loft Silom’ and ‘The Diplomat Sathorn’, which we developed to meet the demand of homes and condos to invest or rent out.”
Moreover, he said, the luxury condominium market is benefiting from limited supply, which keeps prices competitive. According to Knight Frank Chartered (Thailand), only 1% of newly opened super prime condominiums were available in the second quarter of this year, with an 87% absorption rate.
In Bangkok’s central business district areas, such as Sukhumvit, Silom or Sathorn, there’s a mere 10% supply. This underscores the enduring demand for super-prime condominiums, offering convenience and catering to various lifestyles.
The price for a one-bedroom unit in Tait Sathorn 12 starts at about 23 million baht, depending on interior design and décor.
As the market continues to strengthen, Korn said Raimon Land plans to launch two new projects next year. Both will be super-premium condominiums with iconic designs and limited units.
The company also plans to venture into the luxury home segment in the Sukhumvit area to meet the demands of high-end clients for private residences.
The plan is to only make five exclusive houses, starting at 300 million baht. More details will be released in the first quarter of next year.
Apart from prime locations in Bangkok, Raimon Land is also developing a residential estate in Phuket. The project is set to go on sale early next year, with units going for between 600 million and 1 billion baht. The target, he said, was foreign buyers.
Raimon Land stands as Thailand’s top developer of luxury and ultra-luxury properties, with a portfolio of projects worth more than 72 billion baht.