The prices of super prime and prime condominium units located in Bangkok increased to greater than 5% during the first half of 2016, which indicated that these segments are nowhere near being oversupplied, as stated by Knight Frank Thailand.
Increase in prices of condo units
The research done by the property consultancy indicated that for the super prime units, where prices range from 300,000 baht and more, the average prices increased from 303,250 baht per square meter by 2015’s end to 319,095 by 2016’s end of first half. This is an increase of 5.23%.
In this similar period, prices for prime condos also increased from 226,250 baht per square meter to 242,313 baht or 7.05%.
Buyers of condo units
Even with a sluggish economic recovery that reduced buying power, the market increased regardless. Foreign purchases helped this.
Risinee Sarikaputra, the Knight Frank Thailand’s research director, said that they are seeing more interest coming from foreigners in super prime and prime Bangkok condo for sale. Foreign buyers had an average proportion of 5 – 10 percent two years back. Now, they believe that this is already between 10 – 15 percent.
The company indicated that a great number of super prime condo buyers are Thais, who purchase another unit for their second home. The foreign buyers are from Taiwan, Singapore and Hong Kong, those that have their businesses in Thailand.
Condo projects launched
The director of Knight Frank Thailand’s residential department Anchalee Kasemsukthawat mentioned that super prime condos attracted people who want exceptional 24/7 world class services and privilege similar to those in 5-star hotels, like serviced dining spaces and concierge, aside from great location, privacy and convenience.
Knight Frank Research mentioned that no super prime condo projects were launched during the first half of 2016, which left the amount of units in the 10 projects unaltered at a number of 1,960.
In this specific category, The Residences at Mandarin Oriental Bangkok located near the Chao Phraya river was the latest super prime project, which was launched during 2015’s second half having about 146 units.
The market supply share according to location stayed equally distributed, with the biggest share of 578 units or 28% in the Sukhumvit area.
Kraam located in Sukhumvit Soi 26 was the single condo project during this same period in terms of the prime market. The supply is currently at 2.674 units. Sathorn is at the top having the biggest share at 37% followed by Sukhumvit at 28%.