Ultra-luxury houses boom amid slumping property market

Luxury houses priced at more than 100 million baht per unit have enjoyed over 450 billion baht in sales in the past 10 years, with some 394 new units being supplied to the market since 2015, property consultancy firm Colliers International reported on Wednesday.

While the rest of Thailand’s property market is contracting due to the high rejection rate of housing loans by financial institutions, buyers of ultra-luxury houses often pay in cash and therefore do not have to apply for loans, Collier's research director Phattarachai Taweewong explained.

A Colliers’ survey revealed that about 350 houses priced over 100 million baht were in the sales process as of the end of September. Of these, 41.14% are located downtown in areas such as Sukhumvit, Aree, Bang Na, Rama IX, and Phattanakarn.

“These houses have a projected sales rate at 52.28%, meaning there will be only 168 unsold units,” said Phattarachai. “Main customers of this segment are upper-class buyers such as executives, business owners, foreigners and wealthy celebrities.”

In Bangkok, the northern fringe zone reported the highest sales rate of houses priced over 100 million baht, at 65.08%, followed by the eastern fringe, at 59.09%, western fringe (52.54%), inner city (45.83%), and the southern fringe (33.33%).

Colliers estimated that over 30 new units in the so-called “ultimate” class will be supplied to the market next year, reflecting developers’ confidence in the continued growth of this segment.

“The key factor in the decision to purchase an ultimate class house in Bangkok is location. Most of these properties are situated on rare land plots in the city centre and are developed by top-tier brands that typically feature exclusive designs or unique functions. These homes reflect the personal identity of their owners exceptionally well,” he said.