2023-10-05-莱坊-Bangkok_Super_Prime_Condominium_Market_1H_2023_6页_1mb

Summary of Knight Frank Thailand H1 2023 Super Prime and Prime Condominium Market Review

Market Overview

The super prime and prime condominium market in Thailand continued its steady growth during the first half of 2023, despite scarce land for development. High demand persists among both Thai and foreign buyers, with location being the primary purchasing factor. Unit values are consistently rising, leading buyers to prefer resale for future gains due to land scarcity in prime areas. Prime location units remain in constant demand, and condominiums near international schools in the CBD area are increasingly popular with foreigners, particularly Chinese investors.

Supply

As of mid-2023, the super prime condominium supply was 5,194 units, with minimal new additions (only 180 units from one project). Most super prime condos are located in Sukhumvit (46%) and Lumpini (22%), while others are in Chao Phraya River and Sathorn/Silom areas (each 16%). For prime condominiums, the total supply was 5,271 units with no new additions. The majority are in Sukhumvit (39%) and Sathorn/Silom (30%), followed by Lumpini (24%) and Chao Phraya River (7%). Overall supply growth has been modest since 2011.

Demand

Demand remained strong in H1 2023, with slightly decreased sales rates for both segments. Super prime condos sold 4,309 units (83.0% sales rate, down 0.3% YoY), while prime condos sold 4,216 units (80.0% sales rate, up 2.3% YoY). Thai buyers are the main group, with returning Chinese investment noted. Proximity to international schools is a key buying factor, especially in the CBD area.

Asking Price

Average selling prices increased marginally: super prime condos at 378,600 baht per square metre (up 0.87% YoY), and prime condos at 273,000 baht per square metre (up 0.96% YoY). High absorption rates left only 20% inventory, making the market competitive with limited options.

Market Outlook

The market is expected to maintain strong performance due to attractive rental and resale returns. Limited outstanding supply and upcoming projects may drive further price increases. Operators should focus on excellent locations, which enhance value. The return of Asian buyers, especially from China, is anticipated to revitalize the segment, offering opportunities for developers and investors.