Return of foreign buyers lifts CBD luxury market
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The return of foreign investors buying luxury residences in the second half of the year has boosted the segment in the central business districts (CBDs) of Bangkok, according to research by CBRE (Thailand).
The highest-priced residential units this year, at Bt340,000 per square metre, are at Pace Development’s Ritz Carlton Residences on Sathorn Road.
“If the demand to buy luxury residences is still strong next year, CBRE believes prices will hit Bt400,000 per square metre, with land prices in the CBDs rising and demand growing strongly,” said managing director Aliwassa Pathnadabutr.
“Last month, we also succeeded in selling Bt400 million-worth of property in a luxury condominium on the Chao Phraya to foreign buyers as a result of our roadshow in Hong Kong. This means foreign buyers have the confidence to purchase luxury homes in Bangkok,” she said.
Up to 18 per cent of CBRE’s sales of luxury residences – those priced over Bt170,000 per square metre – this year has been bought by foreign investors seeking homes in which to stay or for investment purposes, she added.
More than half of them are from the Asian market, including buyers from Hong Kong, Singapore, Taiwan, China, Japan and Malaysia, with the remainder largely from Germany, the United Kingdom, other European countries and Australia.
The luxury homes snapped up by foreigners are mainly condominiums comprising more than 50 square metres per unit, and located in or close to the capital’s CBDs.
