Luxury projects are leading the Bangkok residential property market with CBRE Thailand reporting sales have increased by more than 200 percent for upscale properties this year. Houses are the most in-demand, although there has been an increase in interest from overseas buyers seeking high-end condominiums across the Thai capital.
“From 2022 to early 2023, 89 percent (of luxury residential property) was purchased by Thai buyers while 11 percent were purchased by foreigners. The majority of these foreign buyers looking for condominiums and houses come from Asia, particularly China, Hong Kong, Taiwan, Myanmar, Singapore and Japan,” Khun Artitaya Kasemlawan, Head of Residential Sales-Project at CBRE Thailand, said.
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She continued, “Furthermore, CBRE found that when compared to residential sales performance in 2021, there was a 383 percent increase in foreign purchases of condominium projects and a 233% increase in house purchases in 2022. Most of the foreign buyers of housing projects were those who live in Thailand.”
The Bangkok residential property market has been driven by luxury sales for several years now, but the return of foreign buyers has proven to be an added boost for homebuilders. CBRE Thailand added this wave of overseas property seekers has high spending and is looking for condominium units they can live in.
“Delving into the behavior of foreign buyers, CBRE found that they have a relatively high purchasing power. Most foreign buyers have a budget to buy condominiums in the price range of THB15-30 million. They look for downtown condominiums in Bangkok’s business areas such as Silom, Sathorn, Lumpini, Sukhumvit, Pathumwan and the riverside,” Khun Artitaya stated.
Chinese buyers are most active in the Bangkok residential property market at the moment. The property consultancy noted this group tends to gravitate towards luxury condominiums in the Silom and Sathorn areas. However, there are a number of Chinese buyers interested in four-bedroom houses in eastern Bangkok at the THB 30-100 million price point.
Khun Artitaya believes developers are gearing up for new luxury and super-luxury residential project launches during the second half of this year with most of these being housing estates. While the return of foreign buyers has stimulated high-end condo demand, this segment is still oversupplied which means firms are looking to offload current inventory.
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