Expats’ demand for luxury condos jumps 8%: CBRE
Wealthy foreigners, mainly Chinese and Taiwanese, think nothing of shelling out 350,000 baht/sqm for a condo
Foreigners snapped up 33% of the luxury condominium units sold by CBRE Thailand in the first half of 2024, increasing from 25% recorded during the same period of the previous year, the property agent/real estate consultant said on Monday.
The rising demand for luxury condos among foreigners is in line with the increasing number of expats in Thailand, standing at 188,232 people as of the end of 2023, said Artitaya Kasemlawan, CBRE’s head of residential sales, adding that the number is close to that of before the Covid-19 pandemic.
She said these wealthy expats helped push the sales of condos in the luxury segment, in contrast with the general situation of the property market, in which most sectors have experienced declining sales due to the high rejection rate for housing loans.
“Sales of super luxury condo units, priced from 350,000 baht per square metre up, stood at 86% in the first half of this year, while those in the branded residence segment (condominiums managed by 5-star hotel groups) enjoyed 90% sales,” she said.
One supporting factor of this trend is the limited supply, she said, adding that there were only three new luxury condo projects launched in Bangkok in the first nine months of this year.
These projects, namely Muniq Phromphong, The Embassy Wireless, and Adler Chan Road, were launched in the first, second, and third quarters, respectively. Marquis Phayathai will be the last luxury project to be launched this year, she added.
Artitaya said most of the demand for luxury condos in Bangkok came from Taiwanese and Chinese buyers who are looking to buy a second home in Thailand.
“Expats believe that Thailand has several advantages, including a wide selection of international schools and cheaper property prices, which attract individual investors from China, Europe, and the US,” she said.
She added that expats working in Thailand were also supported by their companies to rent condos located in the CBD areas to help with the commute. This has driven up the rental rates for luxury condos in downtown areas to 800-1,300 baht per sq.m., and over 1,500 baht per sq.m. for those in prime locations of Bangkok.
“Customers in the luxury segment will not buy or invest in condo units unless they are confident of a positive economic trend. But those in the super luxury segment will snap up units regardless of the economic situation,” said Artitaya.
