The super-luxury segment has become the most popular residential market for developers in Bangkok. While the overall property market in Bangkok has been sluggish and an economic slowdown has troubled the country, units in the super-luxury segment have recorded brisk sales that show now sign of slowing.
Developers large and small have been looking into entering this lucrative segment of the market. Research from Nexus Property Marketing shows that land cost is one of the key factors that have driven property developers to shift their portfolio to this product segment. Super-luxury developments include those condominiums with unit prices of over THB15 million and detached housing projects valued at over THB30 million per unit in inner and outer Bangkok.
“Players in the market can be categorized into 2 main groups; large developers focusing on large projects in both condominium and housing segment which have been in this market for a long time and medium-sized developers focusing on niche product development. They do an analysis on upper-end customer’s needs and develop a small-or medium-sized project,” Nalinrat Chareonsuphong, managing director of Nexus Property Marketing explained. “There are many new developers entering into this market as they believe there is demand in this segment. It is not difficult to market the product and the product is sold to a fewer buyers.”
Sukhumvit and Lang Suan are the two most attractive locations for super-luxury developments according to Nexus Property Marketing with expats preferring these locations in particular. Phahon Yothin and Soi Ari are also predicted to become hotbeds for super-luxury projects in 2016 with these spots being popular with local buyers.
“Next year, this market will continue to grow significantly. There will be new projects at the price ranges of higher than THB30 million with new design concepts coming in this market. More than 10 projects have planned to launch next year from both large and small developers,” Nalinrat added. “Price tends to be higher for new housing styles with different designs and functions that meet customer’s requirements. These projects will be in the inner city in a peaceful area, yet close to luxury lifestyle venues which is a suitable location for this product development.”
