Magnolia Quality Development Corporation (MQDC) thinks demand for luxury condominiums in Bangkok will remain strong and won’t be hindered by the weak overall property market. MQDC’s assistant vice president for marketing and sales projects, Peachpattha Pakakan, told local media that the company is confident luxury projects will continue to be successful.
The developer is pinning its hopes on investors being willing to invest their money in high-end properties in the city with the lure of high demand and strong yields for luxury projects in prime locations. Prices for downtown Bangkok land plots continues to increase and the supply of luxury and superluxury units is limited.
MQDC has three luxury projects currently under construction. The mixed-use Magnolias Ratchadamri Boulevard will feature residential units as well as the Waldorf Astoria Bangkok hotel. Peachpattha said that the project should reach 90 percent sales by year’s end.
The much talked about Magnolias Waterfront Residences at ICONSIAM (imaged) has already closed sales while the other MQDC project, The Residences at Mandarin Oriental, Bangkok, has crossed the 40 percent sales threshold and the developer will continue to be meticulous in its efforts to find the best buyers.
While domestic demand has been slow, the real estate market in Thailand has grown thanks in part to an influx of foreign buyers from Hong Kong, Singapore and Taiwan who have interests in the region and are looking to take advantage of higher yields. However, JLL Thailand pointed out that most super prime condo units are being bought by Thais looking for a second home that serves their exclusive lifestyle.
“We are observing more interest from foreign buyers in super-prime and prime condominiums in Bangkok,” Risinee Sarikaputra, explained research director of Knight Frank Thailand. “Two years ago, the proportion of foreign buyers was averaging around five to five percent; now we believe the number is around 10 to 15 percent.”
