Bangkok’s super-prime condominium segment will continue to be popular among investors, according to the latest research from Knight Frank Thailand. The residential market in Bangkok, especially in the central business district will see prices continue to move upwards as land becomes more scare in these prime locations.
Frank Khan, executive director and head of residential at Knight Frank Thailand, said that the super-prime market segment in Bangkok performed well in 2015, with 1,350 units sold. He added that limited supply played a role in market’s outstanding performance. Only 1,814 units were available on the market.
The super-prime market segment is popular among Thais, Taiwanese, Singaporean-Chinese and Hong Kong Chinese buyers who scoop up these properties for the capital appreciation they often times bring.
Khan noted prices of super-prime condominiums are expected to increase at least 10 to 15 percent this year. Central business areas in close proximity to rapid transit systems will also be desirable locations for the condominium market. These areas include Ratchada-Rama IX, Phetchaburi, Paholyothin and Lad Phrao.
It is being predicted that more leasehold condominiums will be launched in the downtown area in future, Khan noted. The reason for this being is that most of downtown Bangkok’s remaining land is owned by the government.
Other areas where Knight Frank Thailand predicts the condominium market to continue to perform well include the Sukhumvit, Ratchadaphisek and Paholyothin districts. However, it was not all rosy news for the market.
Khan believes projects along the Blue, Green, and Orange mass transit lines have a bright future as the existing stock was still low but some projects along the Purple Line will need to exercise caution as there are a large number of them already. He concluded that developers who chose the right location and offer the right product and price will succeed in the market in 2016.
