PropStat Exclusive: looking at the market of super luxury condo with the price of almost 300,000 THB/Sq.m. in Bangkok of the first half year.

เกริก บุณยโยธิน 25 September, 2017 at 12.03 pm

For the last 2 years, the market of condo in Bangkok have create a phenomenon of a New Normal as also new development of the project, new sale method and also the selling price per sq.m. this is higher that the condo with the price at 120,000 THB/sq.m. transfer to the new criterion of the premium segment. And for condo with the higher price have transfer to get more and more inter super luxury market.  “regularity with the new image” or like everyone calls as  New Normal. That is what happens after the trend of the economic and the consumer. For the market of condo in Bangkok New Normal, the development of project for the last 2 years is the development of the image as Branded Residences that Co-Creation between developers. And the famous brand in the world in Fashion & Lifestyle and in Hospitality that are expertise in service. That is a trend of development for the group of super luxury condos because Branded Residences used to answer the need of good value creation for the target group in both global and loyalty fan of the brand.

 

Magnolias Ratchadamri Boulevard which took the most Hi-end hospitality as  Waldorf Astoria of Hilton-chain to manage.

Photo Credit: http://www.magnolias-ratchadamri.com


Project The Ritz Carlton Residences Bangkok is in the project Mahanakhon, Narathiwat Ratchanakarin road with the height of the building at almost 314 meters. It makes this residences be the highest residences from the ground in Bangkok and Thailand for now. It gives the best view and standard of the service as a 5 stars hotel with 2 rooms in the main zone as 2-5 bedrooms to choose of both duplex and simplex of 209 residences (169 residences and 40 sky residences) which have the selling price in September 2017 at 494,000 THB/sq.m.

Residences zone on 23-53 floor, size between 125-306 sq.m. with the ceiling height at 3.1 meters.

Sky residences zone on 57-73 floor, size between 194-844 sq.m. with the ceiling height at 3.4 meters.

Click here to read : พาชมห้องพักอาศัยที่สูงที่สุดในประเทศไทยที่ The Ritz-Carlton Residences, Bangkok

 

For the market group of super luxury condo that have the selling price more than 300,000 THB per sq.m. almost have target customers with a high potential and believe in being the owner of luxury condo with the high price is the symbol of power, prestige and social status. For another word, the value of being the owner is more than to live in the place… But what dose the developer have for principles or index to determine how much the selling price of each brand of condo should have?

 

In big cities around the world, the main factors that mark which condo should he in the super luxury segment that have a higher selling price than the standard are from 2 factors as 1 the location and 2 the brand… The definition of the word location in super luxury market is that they must be in the area of Premium Upscale at the center of the city. The location of some project must be in a developed area which is hard to find some land to develop, have a good view whether if it’s the river view or a big park. While several elements of the brand are the determinant the selling price which used to be the price that is acceptable for the Brand follower that have some good experiences from the brand they like. And if it’s in Bangkok, the main factor that push the selling price of the condos is if it’s near the subway stations. In other word, the condo that is located near subway station at the center of the city used to have a higher price than other condo at the edge of town.

 

Where are the condo with selling price above 300,000 bath per sq.m.?

Market of condominium in Bangkok has continuously increased for the last 10 years since the BTS-System opened for service of the first line in 1999. Before that the price of condos along the BTS-line might not be so high, but after the popularity of the area and many developers also wants those area to develop their own projects as well. Those project are the one that have potential to be in these expensive area. Prices are higher in every year and makes the price of condos along the BTS-line increase like a shadow too. Because of the power of the subway system which is best system in Bangkok right now, makes the price of condos along the subway-line getting continuously higher in the center of Bangkok. The condos with the selling price over 300,000 bath per sq.m. appears quite often. And if we only count condos of the famous brand, they always used to appears in the area of Withayu, Langsuan-Ratchadamri, Thong Lor and Chaopaya river sude.

For those 4 areas are those area along the BTS-line at the center of the city that is easy to communicate. It is an area will full of lifestyles, office building, world class shopping malls and still have their own entity.

 

In the area of Withayu, is area of calm and peaceful. Most of the land belongs to several embassies and also connect to CBD area like Sathon, Ploenchit include Central Embassy which is a Flagship Store of brand name product from around the world.

The area of Langsuan-Ratchadamri,  the best residential location of Bangkok. With the best elements of the communications, convenience, living standard or the view of all green, It’s popular among foreigners and leader businessmen of Thailand. It’s close to workplaces like Chitlom, Ploenchit and Langsuan with the view on green parks as The Royal Bangkok Sports Club and Lumpini park. Close to educational institution like Mater Dei School and Chulalongkorn University. The main factor that push the selling price of super luxury condos in this area is that most of the land sales as Leasehold

In Thonglor,  an area of lifestyles that have their own entity. New trends always starts here and make Thonglor be the originate a lot of Flagship Stores like furniture, café, restaurants  and community halls. And most important is that a lot of foreigners lives here, especially  the Japanese. Moreover, It’s also close to the EM District which is a shopping destination that everyone wants to visit.

In the area of Chaopraya-riverside that are connected to the BTS-line in both side of the river. That creates new interesting locations in both Bangkok and other province along the river. The expediency of condos along the Chaopraya-river  is beautiful view of the river curve which have their own identity. It is the location that we can’t replace in the future and it’s popular among foreigners as well. Furthermore, in the old area like Klongsan with their old culture which are ready to develop to the next step after the existents of the enormous project that draw the interest from people around the world like ICONSIAM and the gold-line of BTS-system

 

Since 2015, there are a lot of new condo-project with the selling price at almost 200,000 bath/sq.m. and 300,000 bath/sq.m. especially in ther center of city or the special area like Chaopraya-riverside, Withayu, Thonglor and Langsuan-Ratchadamri. Even some project have had the selling price near 300,000 bath/sq.m. and some unit did have the selling price over 300,000 bath/sq.m. before. But by the time the selling price were upgraded to more than 300,000 bath/sq.m. together with the progress of construction.

 

Compare which on of 4 zones that have most supply with potential to develop condos into the class of super luxury.

When talking about condominium which have the selling price over 300,000 bath/sq.m. Those project used to be in the center of the city or special area as I named before. But the tenor in the future, it is possible that condo in the segment of super luxury wouldn’t only localize in those area. But they are spread out in nearly area as well because the super prime area has already been developed. So, if we separate those condominium into several area in Bangkok, we can easy separate them like this:

 

Sukhumvit zone is probably the biggest zone and have the most number of condominium because of the best potential by the communications in Bangkok. And there is also popular among foreigner to live in this area because it’s close to a lot of big workplace which are owned by foreigner too. That is why the Sukhumvit zone do have the highest selling numbers of condominium with selling price over 300,000 bath/sq.m. like the infographic below.

There are almost 3,625 units of condominiums in Bangkok with selling price at almost  300,000 bath/sq.m. which 50% of them have selling price over 300,000 bath/sq.m. are in Sukhumvit zone. The second zone in Lumpini which is around Lumpini-park, after that is Silom zone and Chaopraya-riverside. The reason that Chaopraya zone have the least proportion is because the land along the river is limited.

 

Condominiums with selling price over 300,000 bath/sq.m. started to sale a lot since 2015 as the information below.

 

Condominiums with selling price over 300,000 bath/sq.m.  started to sale a lot since 2015 and decrease in 2016 and the first 7 months 0f 2017. Cause 2014 the market of condominiums in Bangkok have got affected by the land’s political problems and also problems about household debt that affect the middle class buyer and lower. And that is the main customer target in condominium market and continuing effect to all developers selling number. A lot of developer start to search for new market that buyers still have ability to buy. Therefore, developer that have experiences and are accepted to develop condominiums in super luxury segment. So they start to sale more of condominiums which have the price over 300,000 bath/sq.m. in the land zone that have a high price. And that is also the way out buying the land have a high price in Sukhumvit-zone and the center of the city. Moreover a lot of projects that sales have really good feedback from Thai-buyers and also foreigners. The best zone that developers are interested in so there appeara a lot of newborn project in this segment is Sukhumvit-zone.  

 

In Sukhumvit-zone is the zone that sales most of condominiums with the selling price over 300,000 bath/sq.m. when compares with other zone, especially from the beginning of 2015. The area in Sukhumvit that developers are interested to start selling this level of projects is the area along Sukhumvit road from Asok-intersection to Thonglor which have a high price of land.  Developers are also choosing to develop a lot of projects with price-level of 300,000 bath/sq.m. in this area, especially around Sukhumvit soi 39 and Thonglor.

 

In Lumpini-zone is the second area that starts to sale condominiums of super luxury-level with 19% and the advantage of condos in this area is near to Lumpini-park, that a lot of project use to mark as a huge green area in the middle of city that we can’t find in anywhere else. If being the owner of the rooms the are open to get the view of the green of Lumpini-park until the Royal Bangkok Sports Club. No matter which view, it will gives the peace of living for the occupants and also to add important value of selling/buying price and to out renting.  Moreover, Lumpini-zone is also the center of main CBD and popular tourist area of Bangkok like Withayu, Chidlom, Ploenchit and Langsuan. Around Whithayu road is also the place of big office buildings both of Thailand foreigners and also many 5-6 stars hotels to support the visit of businessmen and the tourists. However, there is also remarkable that many project in the area of Withayu-Langsuan are projects as leasehold-kind with the price level in super luxury segment too. Especially projects Langsuan Village by Siam Sindhorn Co.Ltd., affiliates that have the office of the Crown Property as 100% shareholder that newly debut their leasehold condo with selling price almost 300,000 bath/sq.m. like Sindhorn Langsuan” with 20 units. And Sindhorn Tonson” with 59 units as Sarasin Road with average price per sq.m. between 325,000-350,000 THB but still have good feedback from the buyers as well.

 

There are also many other zones that started to sale condos in the same level, especially the area along  Chaopraya-river that all projects in the same price-level are the Co-Branding between developer and all 5 stars Worldwide Hospitality brands.

 

The project of  The Residences at Mandarin Oriental Bangkok

The project of Four Seasons Private Residences

The project of Banyan Tree Residences Riverside Bangkok

 

Who is the buyer of super luxury condos?

The most of buyer-group of this price-level of condominiums are Thai in proportion that is more than foreigner. But Thai-buyers that have ability to buy this level are limited, especially in the time with bad economic like this. All developers do need to start selling to foreigners to fill the part that Thai-buyers are missing with the proportion of foreigners that are less than 20% of all buyers. More and less there are a bit different in different zone and policy of developers about how many foreigner-buyer they want, but the total rate of selling number in this price-level are either not to low.

The average of selling rate of condominiums in this price-level is around 65% It might be so high but it shows that many are still interested in projects in this level.  By the average of selling rate in the center of city is quit high, but it doesn’t means that area along  Chaopraya-river with get less attention. But there are many project that sale as long term leasehold that decrease the interest.

 

Even the buyer-group of condominiums in this level in Thailand are not quit many and the most of them already have some condominium in hand. Thus projects that will start the selling in future have to retard their selling to check economic situations and ability to buy of foreigner. But the projects in special are that don’t have the ability to develop some more project or of they can, there is no  potential to do the same way like the area around Lumpini-park or the area along Chaopraya-river. Especially the are along Chaopraya-river that are difficult to find new land to develop some project each year, particularly the area at Thonburi-side that many believe it’s an area of underdeveloped when compare with the other side. But high-rise projects at Thonburi-side do have abilities to get the better view of all high-rises and city skyline at the other side than those high-buildings on their own side as well. It’s not include the ability to clearly see the view of beauty curve of Chaopraya-river.

Condominium projects with the price-level at almost 300,000 bath/sq.m.  are still continuously increase in selling number. Because the buyers do noy need to sale or if they dose, the selling price would probably be very high like collectibles that their value will each day increase. Especially the projects with their own entity that are difference from other, for example, project the Residences at Mandarin Oriental, Bangkok which is a branded residence that was born by Co-creation between The ICONSIAM Superlux Residence  Corporation Limited (subordinate to MQDC and CP) and the world class hotel brand that have their forever story as Mandarin Oriental hotel group, the owner and manager of the world most luxury hotels, resort and residences.

 

The one and only freehold project with level of super luxury at Chaopraya-riverside which were newly celebrate their success after their 70% sales of their rooms which are the highest sales number of today’s super luxury condo’s market.

 

And if your definition of the most luxury is the extensive and splendid space.  Project the Residence at Mandarin Oriental Bangkok is still be the project that spends the capital per square meter more than the standard of other super luxury projects in Bangkok and also other big cities around the world are using. Each unit have their own elevator to access the own splendid, clear residence because of the ceiling height at 3.20 meters and have the facilities area that are almost 3 times bigger than the most of other super luxury residences by setting the selling price start at around 350,000 THB.per sq.m. And the selling price of the penthouse is started at around 550,000 THB per sq.m. and as highest at 620,000 THB per sq.m., broke the record of the highest price of super luxury condos along Chaopraya-riverside already. The size of the residences are between 130-230 sq.m. per unit, while the penthouse and duplex penthouse 2 bedroom are between 380-710 sq.m. Every units will get the panorama view of Chaopraya-river, high ceiling, clearly and delightful with River Clubhouse on 4-5th floor that are full with a lot of facilities. And on 36th floor is the area of sky Pavilion that shows the most magnificent view of Bangkok as well.

 

If you need more information about the project, please contact us by tel. 02 118 2211 or email: sales@moresidencesbangkok.com and follow the news at the website  www.moresidencesbangkok.com

Click here to read : Mandarin Oriental: The Insight of Global’s Legendary Brand

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เกริก บุณยโยธิน

เกริก บุณยโยธิน

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