Bangkok condos soar to their highest off-plan prices yet
Bangkok condos soar to their highest off-plan prices yet
Will the Thai capital sustain this rate of growth next year?
It appears that the Bangkok luxury home market will finish the year with crowning success.
Asking prices of off-plan, high-end condominiums in the city’s downtown area averaged around THB219,000 (USD6,100) per square metre this year, CBRE revealed in a report yesterday. The figure represents a year-on-year increase of 4.7 percent from 2015, the property consultancy noted.
Thirteen developments this year managed to sell individual units with prices fetching above THB300,000 (USD8,300) per square metre. “While these transactions do not reflect the average price per square metre achieved across the aforementioned projects, such sales are encouraging,” CBRE noted.
Luxury and super-luxury condo projects made up for only 11 percent of total launches this year, however, down from 15 percent in 2015. Only 725 of units launched this year were classified as luxury (minimum price of THB10 million a unit or THB200,000 per square metre) or super-luxury (minimum of THB20 million a unit or THB300,000 per square metre).
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Similarly, launches of luxury landed homes in downtown Bangkok drastically dwindled this year to 45 units, compared with 136 in 2015. Average prices of luxury landed houses this year stood at THB55 million (USD1.53 million) though, an increase of 5.1 percent.
Given the growing gulf between values of existing and off-plan properties in similar locations in Bangkok, an interest in resales is likely to pick up next year, CBRE predicted. The continued rise of land values in the metropolis will also have ramifications on luxe condo price points.
“While CBRE forecasts prices of Bangkok luxury condominiums to rise over next year, in the context of continued land price appreciation, CBRE expects the growth rate to reduce, as significant price rises during the past three years serves to reduce the accessibility and, in turn, the pool of prospective purchasers,” the researchers noted.
Bangkok land prices are poised to increase by as much as 30 percent in 2017, according to real estate consultancy Nexus Property Marketing Co.
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Source: Property Report