Demand for luxury condos strong despite downturn

Although the economy is expected to grow by less than 2 per cent this year, demand for luxury condominiums in Bangkok remains strong, according to property agencies CB Richard Ellis (Thailand) and the Agency for Real Estate Affairs.

Raimon Land’s 185 Rajadamri luxury condominium is fetching the highest prices of all, at Bt500,000 per square metre for penthouses and Bt349,680 per square metre for typical units.

These prices have not deterred luxury-end buyers and 86 per cent of the project value of Bt9.6 billion has already been sold.

The next-highest asking prices are from Pace Development for its Ritz-Carlton Residences condominium on Sathorn Road, at Bt424,000 per square metre for penthouses and Bt285,000 per square metre for typical units. 

The developer has sold up to 60 per cent of the project value of Bt13 billion.

The next most expensive project is Sukhothai Residences, also on Sathorn Road and developed by Grace Ivory. Offer prices are Bt421,000 per square metre for penthouses and between Bt280,000 and Bt300,000 per square metre for typical units. 

Up to 90 per cent of the Bt6-billion luxury project has already been snapped up.

“The main customer targets for our luxury condominium in Bangkok are both foreign and domestic buyers who need a residence in the central business district that is also designed to be the main landmark in the area,” Pace Development CEO Sorapoj Techakraisri said early this year.

 

Location and design

Location and design are the crucial factors behind the current sales success of developers in the luxury-condominium segment.

The 185 Rajadamri project is the only freehold luxury condo available in the Rajdamri Road area, which is a challenge for buyers seeking to purchase a luxury residence.

Meanwhile, it was important for Raimon Land to have used an architect from an international practice who designs each and every unit in the condominium with absolute care, keeping in mind the requirements of the residents without compromising on comfort and style.

Every room within each unit at 185 Rajadamri comprises floor-to-ceiling windows, which allow good ventilation and a clear view of the green surroundings. 

The location of the condominium is such that there is no chance of any new building coming up near this project, which ensures an unhindered view of the Bangkok skyline and good cross-ventilation, the developer said, adding that the airy ambience within each unit helps in maintaining a healthy mind and body.

More than 40 per cent of the units at 185 Rajadamri have already been transferred to customers. 

Ritz-Carlton Residences, meanwhile, forms part of the MahaNakhon complex, which is a mixed-used project combining a condominium, luxury hotel and retail space.

The project’s Sathorn Road location is in one of the capital’s central business districts, while the design concept is by German architect Ole Scheeren, working in collaboration with a Thai architect. 

The tower’s design will assume the shape of a square prism, with the appearance of a rough spiral with cuboidal surfaces cut into the side of the building. The glass walls are divided horizontally and vertically, adding to the building’s “pixelated” appearance. 

Its proposed height – 314 metres with 77 floors – will make it the tallest building in Bangkok by structural height, surpassing Baiyoke Tower II’s record of 304 metres.

Another luxury project, Sukhothai Residences, is also located on South Sathorn Road.

The project is designed by Australian architects Kerry Hill and Ed Tuttle. Hill has also worked on The Sentosa Resort and Spa in Singapore, the Amankora in Bhutan and The Chedi Chiang Mai, while Tuttle’s portfolio includes the Amanbagh in India, the Amankila in Bali and The Chedi Phuket (now The Surin Phuket).

They have designed Sukhothai Residences to be a major landmark on South Sathorn Road by featuring a grid fa?ade, which shades units from the sun.

The 185 Rajadamri, Ritz-Carlton Residences and Sukhothai Residences projects have all succeeded in selling between 50 per cent and 90 per cent of their value, even though they offer units at higher prices than other luxury condos in the market. 

Nearly half of their customers are foreign buyers.

“Despite the country’s slight economic growth [this year], demand to buy luxury residences is still strong at a time when supply in the market is limited, and there is limited land available for the development of luxury condominiums in prime locations,” Raimon Land CEO Johnson Tan said during an interview with The Nation last month.

These factors are why leading listed property firms are expanding their investment in the luxury-condominium segment this year and over the next three years. 

They include Sansiri, which will introduce a fashion-style luxury condominium on Wireless Road next year with an offer price of more than Bt300,000 per square metre; Quality Houses, which plans to develop a luxury condo on Sukhumvit soi 6 next year that targets sales at a price of over Bt300,000 per square metre; and Grand Canal Land, which will launch a luxury condominium on Rama IX in the final quarter of this year.