Photo credit: Sansiri
Luxury single detached homes remained the top-selling category in Greater Bangkok this year, despite a surge in new supply over the past two years, peaking in 2023.
Sumitra Wongpakdee, managing director of property research and consultancy Terra Media and Consulting, noted that high-end single detached houses continued to thrive, contrasting with the lower-priced segments that faced declines in new launches and sales.
“Demand in the high-end market is driven by both end users and investors looking to buy properties for rental purposes,” she explained. “In certain prime areas, a property valued at 15 million baht can yield rental income of 100,000 baht per month, which represents a solid return.”
Based on the company’s market research, luxury single detached houses, defined as units priced at 30 million baht and above, experienced an impressive annual growth of 30% in the monthly absorption rate from 2021 to 2024—the highest in the single detached house market.
This segment saw a peak in new supply launches last year, with approximately 1,500 units introduced, following 1,000 units in 2022. This is a notable increase compared to the typical annual supply of around 100 to 300 units.
In the first nine months of 2024, about 1,000 new units were launched in this category, with an average monthly absorption rate of 0.9 units per project, slightly down from an absorption rate of one unit per project each month in 2023.
Since the pandemic, the second-best-selling segment has been units priced between 10-30 million baht, which recorded an average annual growth of 21% in the monthly absorption rate from 2021 to 2024.
During the first nine months of 2024, approximately 5,100 new units were launched in this price range, with an average monthly absorption rate of 2.4 units per project. This shows an increase from 4,900 units launched in 2023, which had an absorption rate of 2.5 units per project per month.
The 5,100 units launched in the first three quarters of 2024 set a new record, surpassing the total of 4,900 units launched throughout 2023, following 3,100 units launched in 2022. The 2022 figures represented a rise from 1,800 units in 2021, reflecting an annual growth of 45% in new supply from 2021 to 2024.
In contrast, the lower-end segments of single detached houses have experienced declines in both new supply and monthly absorption rates in the first nine months of 2024, largely due to the economic slowdown.
The weakest segment was single detached houses priced at 5 million baht or less, with new supply dropping from 8,500 units in 2022 to 6,500 in 2023, and just 3,700 units in the first nine months of 2024.
The monthly absorption rate for this segment decreased to 2.6 units per project, down from 3.4 in 2023, which had seen an increase from 3.1 in 2022 and 2.9 in 2021. The 2.9 units per project observed in 2021 represented a decline from 3.4 units per project recorded in 2020.
The mass segment, which includes units priced between 5-10 million baht, also experienced a slowdown. In the first nine months of 2024, approximately 8,300 new units were introduced, compared to 13,200 units in 2023, which had been a record high following the 9,300 units recorded in 2022.