Bangkok sees strong, luxury condo demand in first half of 2021
Despite 2021 being considered worse than last year in terms of Covid-19’s economic toll, a leading international property consultant says Bangkok is still drawing investors. And, at a year on year increase of 26.8% for bookings, the interest in Bangkok’s new housing projects is showing no signs of waning. The first half of this year, alone, has seen new, super-luxury condominium projects leading in terms of highest average bookings. Coming in at around 76%, the demand for such high-end condos seems to be the largest out of all property types. Artitaya Kasemlawan, Head of Residential Sales, attributes that demand to the decreasing supply of new condo projects that have slowed by 11.4% in the first quarter from last year.
“Due to the current pandemic, the overall Bangkok residential market in the first half of 2021 was affected by the emergence of Covid-19 waves……with developers concentrating on special offers, mostly giving 5% – 10% discounts, for unsold, ready-to-move-in inventory to quicken customers’ decision making.”
And, with CBRE quoting only 1,444 units being completed in the central business district of Bangkok, the demand for newly-completed, super-luxury condos, is high. Such an upward trend in high-end condo projects shuns the overall notion that the condos, in general, are decreasing in demand. Although Covid-19 has, in general, lead to the property market to plummet, units in rare locations remain attractive. World-renowned hotel brands are also seeing that high-end investors are still wanting to use their purchasing power to snatch up such branded residences.
“Prime location is still the most important factor in attracting buyers and investors, not excluding the offering of high standard services by leading hotel brands which will reflect in long-term capital value appreciation of the projects. This is an excellent time for buyers to own a worthwhile asset which can be passed on to future generations at a reasonable price.”
As Covid-19 has seen a huge upswing in the number of stay at-home-workers, the changing workforce has also influenced the type of property needed for average workers. Such employees who are now finding themselves in the comforts of their own homes, are now needing more spacious condos and single house land plots. Although CBRE’s total luxury housing project sales increased by 120% in the first half of 2021, clients’ visitations to the projects have decreased by 23%. Interestingly enough, a decrease in visitations hasn’t affected the number of units actually sold. In fact, that number has increased by 18% over the same time period as last year.
Cancellations of bookings were also lower than expected, with 1.1% of the total units sold being cancelled in early 2021. Foreign investors accounted for 5.3% of cancelled bookings in the first half of this year.
“Unlike the condominium market that has a higher share of the investor market, the housing market is primarily driven by demand from end-users which makes it less affected by the Covid-19 situation. Recently, there has been a developing trend in the housing market as developers become more in tune with the concept of better living and well-being. This health-focused trend is not limited to the project design, but extended to material selection, innovative technology, and the juristic services for the residents’ well-being as well. These are the elements which will answer the need of modern-day consumers.”
