Thailand’s high-end condominium sector has seen little impact from the political turmoil and economic slowdown, according to CBRE Thailand.
Strong demand and low supply of luxury and well-located projects, along with the high purchasing power of buyers in this segment, were the reasons cited by the real estate agency.
Aliwassa Pathnadabutr, Managing Director of CBRE Thailand, said, “In Q4 2013, there were four new condominium projects launched and represented by CBRE Thailand, with a total of 1,369 units offered for sale.
We managed to generate a total sales volume of more than THB8 billion, with a sales rate of 90 percent achieved in most of the new projects. One project was 100 percent sold out.
“Key factors leading to the successful sales performance despite the overall market slowdown include the developers’ in-depth understanding of their target markets, which led them to create and offer products that matched high-end buyers’ requirements.
“In today’s competitive market, developers creating a high-end or luxury product need to match customers’ requirements, especially in terms of unit size, layout, quality of specifications, and building architecture as well as decoration style.
“I believe there is still room for innovation in new product development,” she said.
Luxury condominium projects that CBRE Thailand represents as their marketing consultant and sole sales agent which are scheduled for completion and transfer in 2014 include Hyde Sukhumvit (pictured) which is 95 percent sold, and Mode Sukhumvit 61 which is sold out.
CBRE noted that levels of unit cancellation in the high-end segment are normally very low.
Aliwassa added: “Most luxury condominium projects require down payment as high as 30 percent, resulting in a limited number of speculators. Some buyers may sell their units for capital gains while most of the buyers either are long-term investors or treat the units as assets for their children.
“High-quality projects are mostly situated in good locations and prices will not fall. For instance, a number of completed condominium developments located on Sukhumvit Road were sold at 20 percent higher than the launch prices.”
CBRE Thailand is expected to launch six new condominium projects for developers in the second half of 2014, with a total value of approximately THB 11 billion. The developments include a resort condominium and villa project in Khao Yai, a freehold condominium project on Langsuan Road, a luxury riverside condominium project, a luxury single house project in downtown Bangkok, and low-rise luxury condominium projects on Sukhumvit 55 and Nanglinchee Roads. Registration for these new projects will open in early June 2014.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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If you have a news story or comment for publication about Thailand property or real estate email andrew@propertyguru.com.sg