Bangkok’s luxury condo market is booming

Bangkok’s luxury condo scene is booming with rent at some high-end condominiums now hitting 100,000 baht per month, reports BangkokBizNews.

Sanchai Khu-Ekachai, Director and Head of Research and Consulting at Knight Frank Thailand Co., Ltd. said…

“The condo market began to recover because of demand from foreigners affected by the Russia – Ukraine war, especially condos in Bangkok. Russian tourists stimulated the market’s recovery, with help from the opening of China’s borders.

“Tourists who travel alone, FIT (Free Individual Travellers), will also help to stimulate the rental market… People who came to buy a condo to rent out to tenants are also coming back to buy more condos.

“This is an opportunity to generate income from renting out condos to foreigners. Especially high-end condos in the heart of the city that foreigners are interested in renting long-term, causing the rental price to increase.

“For example, the rental price of a one-bedroom luxury condo in Silom and Sathorn, close to department stores, dropped to 35,000 baht per month during the Covid pandemic. Now, the price has been readjusted to 50,000 baht – the pre-pandemic price.”

Rent at some high-end condos in the capital has reached 100,000 baht for the first time.

Sanchai says that “work from home” culture is a barrier to the growth of the condo market…

“The main customers in condos from Asoke to Phra Khanong are company employees who work in the city. Demand has started to come back, but it’s not the same. Many people work from home now and have moved out of the city. Therefore, attracting these customers to a rent a condo for 20,000 baht next to the BTS Station is more difficult than it used to be.

“Now, working in the office for only three days and working at home for two days is common. This has reduced the demand for condo rentals. Even if covid disappears, the demand for rental will not return fully. In Asoke and Phrom Phong, condos are rented for 15,000 baht, which is quite cheap, because the purchasing power is yet to return.”

In future, the condo market will need to find new markets instead of depending solely on office workers…

“I believe that the condo market in Bangkok will improve from the return of Chinese people who travel in groups. When China eases the process of gaining passports and visas, it will be easier for people to enter, and we will see Chinese people filling up condos once more – both buying and renting. It is expected that the luxury condo market will take one to two years more to recover fully in Bangkok and major cities.”

Sanchai says the condo market is a major competitor of Airbnb and even hotels who seek out long term customers e.g. solo travellers and digital nomads.

“Tenants used to be 70% employees and 30% digital nomads, mostly from Europe. Now, the ratio is 50:50 because the purchasing power in the employee market has gone.”