The super prime condominium market in Bangkok is attracting local and international ultra high net worth individuals (UHNWI) and investors, according to Knight Frank Thailand. The property consultancy adds that it believes demand and prices in this segment of the market will continue to grow.
Frank Khan, executive director, Head of Residential Department, Knight Frank Thailand pointed out that over the past few years, the super prime condominium segment in Bangkok has grown significantly. The super prime segment comprises a fairly small portion of Bangkok’s total condominium market and there are only eight super prime condominium projects in Bangkok’s CBD.
There are 1,541 units of super prime condominiums in Bangkok at the moment. This is a massive jump from 2008 when only 196 units were available. The super prime bracket was first introduced in 2008 with the launch of Sukhothai Residences, which was classified as the city’s first super prime development. Most projects in this segment are managed by international 5-star hotel brands and are located close to international hospitals, international schools, high-end shopping and dining destinations.
The average selling price of super luxury condominiums in Bangkok’s CBD areas has climbed from THB184,000 per sqm. in 2008 to nearly THB400,000 per sqm. in mid-2015, Khan added. The steady price growth is because of a scarcity of land available for the development of a high-rise residential projects in Bangkok’s popular CBD areas including Sukhumvit, Sathorn and Silom.
“Whatever project is coming in these areas, it would have to be high-end, superb, super prime condominiums, making the prices extremely high,” Mr. Khan noted.
He concluded that Bangkok’s super prime condominium market would not be negatively impacted by the advent of the Asean Economic Community (AEC) in late 2015. In fact, he believes it will actually drive growth in the rental segment because of an influx of human resources relocating themselves to Bangkok with a desire to rent B+ to A-grade apartments.
