CBRE sees big demand for pricey condos in Bangkok

In the first quarter, CBRE represented projects including Parc Priva, Nimit Langsuan, The Diplomat 39 and Four Seasons Private Residences, all of which have been well received by the top-end market.
The “CBRE Elite Living” exhibition is running at the Fashion Hall (first floor) in Bangkok’s Siam Paragon from now until May 31. This is the fourth year CBRE has organised the event, which offers buyers a “one-stop shopping” experience. This year, CBRE has hand-picked 13 projects in the best locations to showcase at the exhibition, ranging from prime housing and condominium projects in Bangkok to luxury resort homes in Phuket, Pattaya and Hua Hin, with a combined value of more than Bt15 billion.
Five new projects are being unveiled for the first time at the event: Klass Sarasin-Rajdamri, Klass Siam, Quarter 39, Tela Thonglor and Baba Beach Club Phuket by Sri Panwa.
“With an active top-end market in the first quarter and a positive momentum, we believe the CBRE Elite Living exhibition is well timed and will allow us to penetrate the luxury market further and bring to potential buyers and investors new products in prime locations that are launching or have recently launched in this segment,” said Aliwassa Pathnadabutr, managing director of CBRE Thailand.
Because of rising land prices in downtown Bangkok, developers now must ensure their product is differentiated and has the ability to draw interest from rich buyers. As a result, CBRE now is seeing new projects that are better not only in terms of concept, design and aesthetics but also in terms of layouts, functionality, finish and specifications.
The superiority and variety of the projects on offer in the luxury market with affordable prices by international standards, particularly in Bangkok, now puts Thailand on the investment map for many foreigners in the region.
In addition, the current stable political climate has been a key factor in drawing back foreigners who are considering buying in Bangkok for investment purposes. CBRE has received more inquiries from individual buyers, foreign developers looking to develop in Thailand, and fund investors.
Thailand remains a prime business hub for Southeast Asia with its prominent location and connectivity to other Asean countries and China. With this strategic advantage combined with prices that are substantially undervalued compared with key regional cities, foreigners are keen to invest in prime downtown Bangkok as they see opportunities for further capital appreciation. This is evidenced by the number of units sold by CBRE to foreigners, which has risen from 18 per cent in the fourth quarter of 2014 to 22 per cent in the first quarter of 2015. Foreign inquiries generated via the CBRE Thailand website also rose by 4 per cent during the same period.
In addition to the growing foreign demand that is driving the top-end market, demand from high-net-worth Thais across all age groups including singles and joint-families continues to increase for condominiums and houses in prime downtown locations, both for own-use and as an investment.
In 2015, prices of downtown condominiums in Bangkok have increased across the board at varying degrees, depending on the property grade, condition and location. Average prices of high-end above condos have increased by 12 per cent per annum. The luxury and super-luxury segment has increased at the highest rate, with prices of new projects increasing 20 per cent from 2014.
Resale prices of luxury properties in prime downtown locations have also increased by an average of 7-12 per cent per annum during the past two years, whereas prices of older condominium buildings, mostly built during 1990s, have increased at a slower rate, about 3-5 per cent per annum, Aliwassa said.