Bangkok’s Luxury Condo Surge Caused By Rising Land Pries

28 Jun 2017

More and more luxury condos are being built in prime Bangkok locations and this is a result of rising land prices in these areas, media reports. Wealthy buyers continue to invest in these projects and demand is strong in the segment even as the economy in Thailand struggles.

“Despite a sluggish economy, buyers in the luxury segment will not dump a unit on which they have made a down-payment as they won’t feel much impact from the economic slowdown. The lower-end segment is struggling with purchasing power and mortgage loan rejections,” says Major Development Plc Managing Director Suriya Poolvoralaks to the Bangkok Post.

Public perception when it comes to super-luxury residential products has improved during the past 3 years and buyers no longer have an issue with paying unit prices of higher than THB 200,000 baht per sq. metre. Additionally, the wealth management units of several banks are urging their wealthy customers to invest in luxury condos in prime locations such as Sukhumvit Road.

Several Thai developers are now looking at the luxury segment and have a desire to acquire prime land plots in central Bangkok, causing land prices to increase. Major Development has seen demand stay steady despite the rising prices for units.

“We have strong confidence in the luxury segment, given our project near Sukhumvit Soi 39 where we have seen an increase of 25 per cent in selling prices in three years to 300,000 per sq. metre. The project value is also higher, rising from THB 6.5 billion since the launch in 2014 to over THB 7 billion at the moment,” says Suriya.

Major Development is looking to purchase a land plot in Bangkok’s CBD this year for a new luxury condo project. Units will be priced at THB 300,000 baht per sq. metre and the developer hopes to launch the project in the 4th quarter.

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