RML bets on ultra-luxury Bangkok mansions amid property slump
Despite concerns over Thailand's sluggish real estate market, a niche opportunity in the high-net-worth segment has prompted leading developers to launch branded residences and luxury projects.
Raimon Land (RML) is the latest to jump on the bandwagon, unveiling plans for a quartet of ultra-luxury Bangkok mansions on Sukhumvit 28 between Phrom Phong and Thonglor.
The 528 Estate is touted as the only private luxury mansion development in Bangkok's central business district. Four seven-storey mansions will offer between 2,300 to 2,700 square metres of living space, equipped with high-end amenities typically found in luxury hotels.
Valued at over 4 billion baht, the project is set to break ground next year and open in 2027, with prices from 880 million baht.
"The 528 Estate is more than just an ultra-luxury project. Built under the concept of 'An Enduring Legacy', this development is a testament to the future, a heritage to be passed down through generations. Its location on Soi Sukhumvit 28 has long been home to affluent families and remains one of the most sought-after addresses in Bangkok," said Korn Narongdej, director and chair of RML’s executive committee.
Kris Narongdej, chairman of the board, explained the company's strategy.
"With the ongoing growth of the luxury and ultra-luxury real estate markets in Thailand and Asia, driven by increasing demand from High-Net-Worth Individuals (HNWI), RML is focusing its portfolio exclusively on luxury and ultra-luxury developments.”
To appeal to this elite clientele, RML has partnered with French luxury brand Baccarat for interior design and List Sotheby's International Realty Thailand for sales and marketing.
Despite the project's ambitious scope, industry experts remain cautiously optimistic.
"These luxury mansions in Bangkok will likely sell quickly due to their unique strengths and prime location, meeting the needs of high-net-worth customers worldwide," said Quang M Do, board director of List Sotheby's International Realty, Thailand.
However, success of such ultra-luxury projects in the current economic climate remains uncertain. Thailand's overall real estate market has been sluggish, with the Bank of Thailand recently warning over oversupply in some segments.
RML and its partners are aiming to bypass the downturn by tapping into the global HNWI market.
"This partnership will not only attract HNWI buyers to Bangkok but also provide RML with an opportunity to connect with a global clientele, enhancing its international profile," Do said.
The involvement of Baccarat, known for its crystal glassware and presence in iconic luxury hotels, adds another layer of exclusivity to the project.
"For The 528 Estate, Baccarat has artfully curated a special collection that embodies an interior design concept infused with the enchanting allure of Baccarat's crystal from France," said Clément Brunet-Moret, CEO of Asia Pacific at Baccarat Far East.
While the project represents a significant investment in the ultra-luxury segment, it also highlights the growing disparity in Thailand's property market. As developers focus on high-end projects catering to the wealthy, questions arise about the accessibility of housing for the broader population.
The 528 Estate project will serve as a litmus test for the resilience of the ultra-luxury real estate market in Bangkok, potentially influencing future development strategies in the sector. As the project progresses, industry observers will be keenly watching to see if this bold move pays off in Thailand's evolving property landscape.
