The prime residential locations all over Bangkok are experience a trend of rising real estate prices, which have led to the rise of luxury condominium units all across the city, located alongside the numerous hotels and resorts. These days, a hotel near Phrom Phong BTS is just as likely to be right next to a condo as another hotel.
According to data released by the SET-listed Major Development PLC (MJD), released with a statement from MJD Managing Director SuriyaPoolvoralaks, demands for condominium units in Bangkok’s prime real estate locations remains healthy, despite recent predictions forecasting a somewhat uncertain economic future for the country. According to Mr. Suriya, buyers in the luxury condo sector do not let go of any unit that they have made prior down-payments to, as they, reportedly, are not heavily affected, if at all, by the economic slowdown in Thailand. Mr. Suriya says that this contrasts the lower-end segment, who are experiencing issues regarding purchasing power and mortgage loans.
He adds that the public’s perception on the super-luxury residential products is better than before, making it more lax and flexible than what it was three years ago. Back then, units more expensive than Bt200K would not be accepted.
The annual rise experienced by Thai real estate has led to wealthy individuals to shift their investments to luxury condos in Thailand’s prime residential areas, much like the financial institutions operating in the country.
Mr. Suriya has expressed MJD’s confidence in the luxury condo sector, which has lead to the popular sight of buildings in the prime real estate regions of Thailand, such as a hotel near PhromPhong BTS, to be standing not far from a luxury condominium. He adds that the MJD’s project, located near SukhumvitSoi 39, has seen an increase in its selling prices the past three years, which have now hit approximately Bt 300,000/m2.
According to data currently available, land prices in the PhromPhong area sit at approximately Bt2M/wa2 (4 m2). This is a marked increase from prices recorded four years ago, when the average prices for land in PhromPhong sat at approximately Bt1.4M.