At least four luxury and super-luxury condominium projects are set to launch in central Bangkok from next month through mid-2025, motivated by a limited supply this year and robust demand from international buyers.
Artitaya Kasemlawan, head of residential sales and projects at CBRE Thailand, indicated that both established developers and newcomers are entering the market, anticipating a rebound in the residential sector by 2025.
“The residential market has cooled this year, leading some developers to be cautious about new project launches,” she noted. “However, not all areas and segments are facing difficulties.”
Demand for luxury condominiums remains strong, with sales performance influenced by factors such as location, product features, and pricing, which should remain close to market rates, according to Ms. Artitaya.
In the super-luxury segment, where units are priced at 350,000 baht per square metre or higher, as well as branded residences, sales in the first half of 2024 were robust, with 86% and 90% sold, respectively, largely due to limited availability.
During the first nine months of this year, only one new condo project in the luxury and ultra-luxury sectors was launched in Bangkok each quarter: Muniq Phrom Phong in the first quarter, The Embassy Wireless in the second, and Adler Chan Road in the third. The last project for this segment scheduled to launch this year is Marquis Phayathai.
“Foreign demand for Bangkok condominiums in this segment has shown signs of recovery, particularly from buyers in Taiwan between 2022 and the first half of 2024,” she explained. “From 2018 to 2021, Chinese buyers dominated the market.”
Data from CBRE for the first half of 2024 reveals that the proportion of foreign buyers rose to 33%, compared to 25% in 2022-23 and 12% in 2020-21. This figure was 23% prior to the pandemic in 2018-19.
“Factors influencing a developer’s decision to launch a project include the global and Thai economies, which impact the high-end and luxury segments, as well as the medium and lower-end segments, more significantly than the super-luxury segment,” stated Ms. Artitaya.
She added that luxury segment buyers might be hesitant to purchase or invest in condominiums, particularly if they are considering second homes or investment properties, unless they are confident in the economic outlook. However, buyers in the super-luxury segment appear unaffected by economic forecasts, according to Ms. Artitaya.
