Higher quality and limited development sites in CBD pushing prices up Prices of top-end condominiums in both completed buildings and off-plan projects in Bangkok’s central business district (CBD) continue to grow. Despite slower sales and high levels of new supply entering the market over the past years, rising development costs and sustained demand have driven price growth, according to Jones Lang LaSalle, a professional services firm specializing in real estate.
Mrs. Suphin Mechuchep, Managing Director of Jones Lang LaSalle, said
“Though top-end condominiums are only a small segment of the market and are not necessarily representative of the Bangkok condominium market as a whole, we have discovered some interesting movements in this sector. Generally, the sector has continued to perform fairly well.
Though demand from foreign buyers has not yet fully recovered, interest from this group has picked up since the conclusion of the national elections in July. In addition, Thai buyers remain active with most of the recent purchases being made by high net worth Thais who are buying for their own occupation or as an investment.”
Jones Lang LaSalle (Thailand) observed that recently completed developments are enjoying an average sales rate of approximately 85% while newly launched projects have witnessed the lower average sales rate of 50%, which is a relatively healthy rate when taking high levels of new supply that have entered the market over the past years into account.
Data from Jones Lang LaSalle revealed that the number of top-end condominiums in completed buildings across Bangkok’s CBD rose from 10,324 at the end of the first quarter of 2006 to 21,464 at present. An additional 3,867 units are expected to be completed between now and the end of 2013.
Top-end condominium units in some completed developments have enjoyed price increases by as much as 40% over the past three years.
Certain newly launched projects are offering prices ranging between THB190,000 and THB230,000 per square meter, compared to a price range between THB150,000 and THB200,000 per square meter offered by comparable new projects launched in 2010. Units in prime locations within the CBD such as Ploenchit, Witthayu, Langsuan, Saladeang and Sathorn areas where land for new developments is becoming scarce fetch the highest prices. Read More