According to the Thailand branch of Knight Frank, a residential and commercial property consultancy operating across the globe, the growth that Thailand’s condominiums have experienced over the past few years will continue, albeit at a slower pace. It’s becoming commonplace to see a fancy condo not far from a 5 star hotel in Sukhumvit.
According to Frank Khan, the company executive director, the past year was another notable one for the prime condo market of Bangkok, marked by strong demands and growing prices in spite of the ramifications of the slowdown of the Thai economy. Mr. Khan states that their data projects continued growth, but at a slower rate than last year.
Mr. Frank says that the supply and demand for prime and super-prime condos are both rising. According to their data, the supply is improving due to developers finding prime real estate space for their development projects, which would lead to increased returns on expensive to purchase land plots. Meanwhile, demand improved due to the notable increase of prospective customers, composed of notably affluent persons free from the constraints of home loans, and the additional demand brought by foreigners from Hong Kong.
Not even halfway through the year, Knight Frank has added 6 new projects to their list of prime and super-prime condos. However, two areas, Sathorn and Riverside, are not adding any additional units that would qualify as prime or super-prime.
- Sukhumvit adds 597 units, with 236 of these units being super-prime, from the following locations.
- Khun by Yoo on Sukhumvit 55 (Thong Lo)
- Vittorio on Sukhumvit 39 (Phrom Pong)
- Central Lumpini adds 513, all from two super-prime projects.
- 98 Wireless on Wireless Road
- 28 Chidlom on Chidlom Road
The rate of sales for prime condos at the end of last year totaled to 75.4%, equating to 382 units, whilst for, super-prime, it totaled to 53.6%, from the 59.3% of the preceding year. If this trend continues, as Knight Frank’s data suggests, then growth will slow down by a notable amount. One key factor to the decline in sold-rate was due to the inability of several projects to meet their completion deadline and launch, following the national mourning period of the country after the death of King Rama IX.
That 5 star hotel in Sukhumvit, according to Knight Frank, will soon be sharing its skyline with high-class condo units.