Bangkok--8 Feb--CBRE
There has been a strong start to Bangkok Central Business District (CBD) condominium sales at the beginning of year, according to CBRE, an international property consultancy firm.
Developers are buying prime sites and planning new projects. Buyers encouraged by the improving economy are increasingly confident.
CBRE Thailand has seen evidence of this growth trend on its sole agency projects. For example, COOPER SIAM sold out in one day, The Reserve Sukhumvit 61 was 85% sold. CBRE expects that MUNIQ Langsuan, which will be launched this coming weekend, will receive a similar response based on strong interest from presales registrations from potential purchasers.
In 2017, CBRE sold THB 17.7 billion of Thai residential properties, which was a 12% growth from 2016. "We believe marketing efforts both domestically and internationally have driven interest in high quality, luxury projects in Bangkok, where the price of real estate is still affordable when compared to other major hub cities such as Hong Kong or Singapore," said Ms. Aliwassa Pathnadabutr, Managing Director of CBRE Thailand.
CBRE forecasts that there will be growth in both Thai and foreign purchasers interested in prime Bangkok residential property. While many wealthy Thais own a larger home in the suburb areas of Bangkok, many still want to have a residence in the city centre because this is where they work, live and play.
A second reason is that they are also purchasing a condominium in the city to use as a second home for their children who are attending school or university, or working in the city. Both Thai and foreign buyers choose luxury condominiums in prime locations in Bangkok as investment properties because historical data shows solid price appreciation over time.
There is a recognition that land prices and consequently new condominium development prices are going to continue rising due to a greater scarcity of potential prime development sites.
Buyers are taking the decision to buy now rather than wait.
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