Bangkok prime Condo market still thriving
THE PRICES of prime and super-prime condominium units in Bangkok increased by more than 5 per cent in the first half of the year, suggesting that those segments are far from being oversupplied, according to Knight Frank Thailand.
The property consultancy’s research showed that for super-prime units – of which prices are Bt300,000 and above – the average prices jumped from Bt303,250 per square metre at the end of 2015 to Bt319,095 at the end of the first half of 2016, an increase by 5.23 per cent.
In the same period, the prices of prime condos increased from Bt226,350 per square metre to Bt242,313, or 7.05 per cent.
Despite the slow economic recovery, which has dented purchasing power, the market still expanded. This was assisted by foreign purchases.
“We are observing more interest from foreign buyers in super-prime and prime condominiums in Bangkok. Two years ago, the proportion of foreign buyers was averaging around 5 to 10 per cent; now we believe the number is around 10 to 15 per cent,” said Risinee Sarikaputra, research director of Knight Frank Thailand.
The company says most buyers of super-prime condos are Thais who buy a unit as second home that serves their exclusive lifestyle. The foreign buyers of these units are mostly people from Hong Kong, Singapore or Taiwan who have businesses in Thailand.
Anchalee Kasemsukthawat, director of the firm’s residential department, said super-prime condos appealed to those who yearn for privilege and exceptional 24-hour world-class services on a par with five-star hotels, such as concierge and serviced dining space for an exclusive culinary table, in addition to prime location, convenience and privacy.
Knight Frank Research said there were no super-prime condo projects launched in the first half of the year, leaving the number of units in 10 projects unchanged at 1,960.
In this category, The Residences at Mandarin Oriental Bangkok on the Chao Phraya riverside was the most recent super-prime project, having launched in the second half of 2015 with 146 units.
The market supply share by location remained relatively equally distributed, with the Sukhumvit area having the highest share of 29 per cent or 578 units.
As for the prime market, Kraam on Sukhumvit Soi 26 was the only condo project launched in the period, adding 126 units to the market. The prime market supply currently stands at 2,674 units, with Sathorn still boasting the largest share of the segment at 37 per cent, followed by fast-growing Sukhumvit at 28 per cent.
