Back in 2016 the Wealthy sector of Bangkok’s residential market has performed well.
The Thai investors have the major role in controlling the luxury property in Bangkok's residential market. According to real estate firm CBRE, 85 percent of purchasers of the market are coming from this sector.
Last year, we saw successful launches of high-profile residential developments and record prices have also been achieved at the upper end of the market. It had drawn attention as this part of the sector are not affected by the increasing difficulties in acquiring a mortgage to purchase a property. The wealthy market accounts for condominiums achieved between THB 200,000 to 299,999 per square meter or the whole unit costing in excess of THB 10 million.
Compared to the previous year, Last year's average price has increased 4.7 percent, currently stands at THB 219,000 per square meter. Properties in Sukhumvit, Sathorn and Central Lumphini continue to attract more investors because of their prime location situated amongst Bangkok’s amenities and attractions.
Properties that achieve over THB 300,000 per square meter or cost more than THB 20 million per unit from the most wealthy sector has significantly increased as well. Prestigious residential developments such as 185 Rajadamri and The Ritz-Carlton Residences have individual unit transactions recorded over THB 400,000 per square meter and 13 projects have achieved sales at this level. CBRE also noted that Marque was the first project on Sukhumvit to hit a sale in this bracket which only shows the needs for this part of the sector.
The high demand for a wealthy and comfortable type of property is forecasted to continue this year. The slowdown of supply of this part of the market favor
of the developers due
to it triggers the
supply and demand mechanism.