Bangkok’s super prime condominium market has grown in recent years and it looks like that trend will continue in 2017 but at a much slower sales pace, shows research from Knight Frank Thailand.
“2016 was another outstanding year for Bangkok’s prime and super prime condo market, with strong demand and high price growth despite the spillover effect from the slowing economy,” tells Frank Khan, Executive Director and Residential Head, to the Nation.
Thai developers with land banks in prime, CBD locations found these spots to be the best place for super prime residential developments. These projects generate above average returns on plots that usually cost a lot to acquire. As for super prime condo buyers, these tend to be mostly affluent individuals who do not need home loans to complete purchases. There has also been a lot of demand from foreign buyers in the past 2 years.
Knight Frank added 6 Bangkok projects to its prime and super prime condo list. Sukhumvit has the largest amount of prime and super prime units entering the market with a total of 597. Of these, 236 were considered to be super prime units and these came from 2 projects: Khun by Yoo on Thong Lo and Vittorio on Phrom Phong, reports local media.
There were 513 super prime units from the central Lumpini area to enter the market, the most of any area. These came entirely from Sansiri’s 98 Wireless on Wireless Road and 28 Chidlom by SC Asset. The latter project is yet to have a full launch.
Thailand’s prime and super prime condo segments have been the best performing ones with strong demand and price growth. This is in contrast to the overall performance of the Bangkok and Phuket markets which have been slumping. The low-end segment in particular has been in decline due to an increase in mortgage rejections.
The accumulated sold-rate for the super prime segment fell for the 2nd straight year, dropping by almost 6 per cent, says Knight Frank. This was despite a very high number of first-hand transactions that were recorded.
Featured Image: Khun by Yoo,
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