Increase in luxury apartments in Bangkok

Increase in luxury apartments in Bangkok, High-end apartment projects will be launched in Bangkok this year, bringing the supply to 22,834 units. Apartment developers are now focusing more on luxury apartments after some projects were delayed due to political instability and the global economic crisis.   The average price of new luxury projects increased by at least 4% due to rising real estate and construction material costs. 

Since the beginning of January 2011, demand from foreign buyers has helped increase the number of apartments launched with prices in the central business district around THB 140,000 per square meter. There were 1,894 luxury apartments completed this year, bringing the total number of apartments to 22,834 units from 20,940 units in 2010. 

Since the political problems occurred, the majority of foreign investment came from Hong Kong, Singapore, Malaysia, and China, especially in the office and hotel sectors. Moreover,  investments in Thailand always show good returns compared to investments in other countries.  

Previously, real estate in Bangkok was dominated by wealthy European and Singaporean investors. However, the trend has recently changed from Europeans to Asians, especially Chinese, Singaporeans, and Hong Kongers, especially in the low-risk luxury segment with limited supply. The main concerns remain foreign ownership rates and restrictions on real estate financing. 

Downtown, Sukhumvit, and along the river are still considered luxury properties with a  minimum area of ​​120 square meters and prices starting at 150,000 Bt per square meter.   The average price of a new condominium unit in Bangkok has increased by more than 100% in the past 10 years. 

There are so many units on the market right now and this affects all price points. However, there are signs that the luxury market will do better this year as the political situation stabilizes. Maintaining stable conditions will allow for a gradual price increase as consumer confidence increases across the country and this will continue in 2012.   

Buying a used apartment as a residence is the solution. The best solution is when the rental market for new apartments puts pressure on rent. Investors who have purchased units for investment have difficulty renting units because tenants prefer newer units. 

Currently, many brand-new apartments are available at affordable prices with value for money as living space and the opportunity to buy second-hand apartments as an investment. Older apartments in prime locations and well-managed are in high demand among tenants. Sanctuary at Newton Condo

Buying a used apartment as an investment is a more complicated process with more factors to consider. Location is not guaranteed as it must also be close to amenities, public transport, and access to main roads. Older projects offer larger common areas and recreational facilities not available in newer projects. The majority of foreigners working in Thailand are Japanese.