It has been revealed that the luxury condo market in Bangkok is set to end the year on an all-time high.
The asking prices of the luxury condos being sold off-plan in the downtown area of the city are now averaging Bt219,000 per square metre. This is a year on year increase since 2015 of 4.7%.
A total of 13 developments this year have been able to sell individual condos with an asking price of more than Bt300,000. The research has shown that these transactions are much higher than the average price per square metre for these projects, but sales like these have given a real boost to the market.
Projects at the luxury and super-luxury end of the condo market account for 11% of all the condo launches in the downtown area of Bangkok this year. This figure is lower than the 15% achieved in 2015.
This year only 725 units were launched that would fall into either a luxury (at least Bt10 million or Bt200,000 per square metre) or super-luxury (Bt20million or Bt300.000 per square metre) category.
There has also been a downturn in the number of luxury landed homes launched in the downtown area of the city, with only 45 such units reaching the market. In 2015 this figure was 136. The average price of a luxury landed house in this area this year stands at Bt55million, the equivalent of $1.53 million. This is a price increase of 5.1%.
There is an ever-growing divide between the values of existing properties and off-plan properties in similar Bangkok areas and is it thought that this will boost an interest in resales next year. Land values in the city are continuing to rise and this will also have an impact on the price points of luxury and super luxury condos.
However, over the next year, the growth rate is expected to reduce slightly although the prices of luxury condos are set to rise. Price rises that have been seen over the last few years have reduced the number of investors who are considering Thai properties and also the accessibility of investors to the property market.
It is estimated that land prices in Bangkok are set to rise by up to 30% by the end of this year.