Knight Frank reveals that the super prime and prime condo market has an average sales rate of 80%, with the "Sukhumvit" area still the hottest location of all time. The location of international schools pushes their value up.

Nattha Khapana, Managing Director of Knight Frank Thailand Company Limited, said that the market for super prime condos priced at 15 million baht or more per unit and prime priced at 10-15 million baht per unit in Bangkok in the second half of the year. In the past, there was only 1 super prime condominium project opening with 180 units, while there was "no" new supply of prime condominiums. As a result, the average sales rate of super prime and prime condos is as high as 80%.

“The return of the Chinese group has resulted in the market being lively. and additional factors used in project selection The location is close to an international school.”

Overall, the expansion of the super prime and prime condo market continues to grow steadily. Although the land for development is less But the demand in this market is high! among Thai and foreign buyers

“Location” is also the main factor that makes buyers decide to invest in this group of condos, which can create continuously increasing value. Therefore, it is popular to buy these condos to resell in the future because they believe that they can still make a good price even though they are "second-hand condos".

Land in prime areas in the CBD or Central Business District, such as Silom, Chidlom, Sukhumvit, are popular all the time. Meanwhile, condos near international schools in the CBD area are starting to play a bigger role among foreigners. Especially the Chinese

In terms of supply of super prime condos in mid-2023, there will be a total supply of 5,194 units, from the past January-June. There is a new supply of 180 units for sale, 1 project. Most super prime condos are located in the Sukhumvit area, accounting for 46%, followed by the Lumpini area, 22%, along the Chao Phraya River and Sathorn/Silom. Equal at 16%

Prime condos in the middle of 2023 have a supply of 5,271 units and there is still no open supply in the first half of this year. Most are in the Sukhumvit area, accounting for 39%, followed by Sathorn/Silom 30%, Lumpini 24%, along the Chao Phraya River 7%.

In the first half of 2023, the super prime and prime condo market There is still continued demand. Due to the addition of new supply, the sales rate decreased slightly. Super prime condos sold a total of 4,309 units from a supply of 5,194 units, a sales rate of 83%, "decreasing" from the end of last year at 0.3%. As for demand for prime condos, in the first half of 2023, 4,216 were sold. Units from a total supply of 5,271 units, accounting for a sales rate of 80%.

“The group of buyers is still mainly wealthy Thais who are real residents. In addition, we are beginning to see Chinese groups coming back to buy some. This is reflected in the amount of ownership transfers.”

While the average selling price level of super prime condos in mid-2023, the selling price is 378,600 baht per square meter. Increased from the end of 2022 at a rate of 0.87 % with an average selling price of 374,745 baht per square meter. As for Prime condos, mid-2023, the average selling price is 273,000 baht per square meter. Increased from the end of 2022 at a rate of 0.96%. It was found that the market's absorption rate is quite high, so there are only 20% of units left for sale, causing the market to have relatively few and limited options.

For trends in super prime and prime condos There is continuous demand because it is real estate. That can create quite good value whether renting or reselling. But the remaining supply is starting to decrease. Including the emergence of new supply in the future. This may cause the selling price to increase in the future. Meanwhile, entrepreneurs may need to rely on timing to develop projects that meet living needs. Including choosing a good location for development.

“A good location will be a positive factor causing the project to receive continued interest. Because of the uniqueness of the location As a result, the selling price has a high value.”

The return of the Asian group Especially the Chinese Main purchasing power! This makes the condo market at this level lively. It is a good sign for many developers who have folded their project development plans and are ready to take on new projects again.

Source:https://www.bangkokbiznews.com/property/1091891

Date 4/10/2023