Apr 25 2017Add to Favorites
The race is on between developers in Thailand as they look to entice wealthy local and international buyers to their luxury developments. Many companies have targeted the luxury and super luxury condo segments in Bangkok due to an influx of buyers wanting to live close to the city centre, according to media reports.
While foreign buyers have always preferred condos in Bangkok’s CBD, rich Thai buyers are now looking to stay in the city after the previous generations preferred to live in large suburban mansions. Developers have noticed this trend and are focused on launching high-end condo projects to meet this new demand.
“Bangkok has become a more inward-looking city, where we have now a greater concentration of facilities and attractions in the city centre. So the best hospitals, the best restaurants, the best shopping centres are downtown, and many of the younger generation work in the downtown area,” says James Pitchon, Executive Director of Research and Consulting at CBRE, to the Nikkei Asian Review.
Affluent Chinese, Singaporean, Japanese and Hong Kong buyers are also eager to purchase luxurious condos in Bangkok’s CBD where prices are significantly cheaper than their home markets. Condo projects along Sukhumvit Road sold out their foreign quota last year.
While the outlook is positive at the moment, there is some concern regarding the sustainability of Bangkok’s luxury condo market in the coming years. The segment is already dealing with rising land prices for prime lots and there is a very limited domestic market meaning developers will have to rely heavily on international buyers, according to the Nikkei Asian Review.
“Land prices are likely to continue to rise, meaning developers will have to sell at higher prices. However, we are dealing with a very elite market that is quite finite. Not everybody can afford to spend several million dollars on a luxury condominium in downtown Bangkok,” says Pitchon.
SOURCE: Property Report
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