Large apartments in high demand in Bangkok, despite higher prices

The resale market is predicted to see steady strong demand for larger condominium units this year, despite higher prices for smaller units in new Bangkok developments.

CBRE Thailand stated apartment buyers were seeking bigger apartments in popular locations at reasonable rates, the Bangkok Post reported.

Consumers of resale condos like spacious properties with a separated workstation from the lounge. These requirements are met by the resale market for older properties.

“Most of the buyers in the resale market are end users purchasing a unit for their own use rather than speculating for short-term profit,” said head of residential sales ad hoc team, Praphinleeya Phuengkhuankhan.

Last year, the most popular areas for resale apartments were Sathorn, riverside neighbourhoods and Sukhumvit, as well as Charoen Krung roads and Charoen Nakhon

The units that had the most attention are those with two bedrooms of 80-130 square metres, three bedrooms at 200-360 square metres and one bedroom with 67-84 square metres.

Times have changed. Older properties are generally larger than newer properties, minus modern perks. For example, those seeking newer apartments will find one bedroom units with only 35-50 square metres, two bedroom units with 55 to 90 square meters and three bedrooms with 90-140 square metres.

According to Praphinleeya, the current resale prices of all buildings in the same areas was not altered equally because the value was influenced by the building’s condition, power and water systems, and the building’s management to verify that will not degrade over time.

“Any building with these characteristics is more resilient than other buildings in the same location. The price and the popularity can be higher than those of the same age… The price of each project will reflect the market demands of buyers and sellers at that particular time.”

Potential buyers of resale properties are primarily end-users who wish to visit the actual unit before making a purchase. Another benefit is that customers can come to the site and work out a deal with owners who wish to sell.

If the unit has been sold, there will also be extra tax expenses and transfer fees that both sellers and buyers will have to pay.

“Buyers had a better understanding of the resale market, where prices are determined not only by demand and supply of each project and/or the size of units, but also the unique needs of the sellers.”

Source: Bangkok Post