The Bangkok property market is witnessing a slowdown in growth at the high-end of the market.
According to real estate agency JLL, in its new Asia-Pacific Residential report focusing on activities in Q3 2017, it noted that eight new condo projects were launched in the Bangkok property market during the three months ending September 2017.
Those projects achieved a combined sales rate of 61 percent, it said, while adding that some projects at in the high-end of the market saw pre-sale rates of as low as 15 percent.
Rental yields in the market remained stable at 4.7 percent, it noted.
Two notable transactions in the Bangkok property market were recorded during the quarter.
Lucky Living set a record for price paid per sqm in the central business district (CBD) with its purchase of a land plot near the Asoke/Sukhumvit intersection for THB 500,000 per sqm. Plans for an ultra-luxury development are in the pipeline for the site.
Supalai also set a record – the single largest transaction development site purchase in the CBD – when it paid THB 4.6 billion for the site of the former Australian Embassy.
The report, which shone the spotlight on central Bangkok’s high-end and luxury residential markets, noted than some 6,800 units will be completed in the sector during the next 12 months. More than 85 percent, it said, have been pre-sold.
In conclusion, JLL said that while domestic demand is expected to remain healthy for well-connected and well-appointed projects, for developers to continue to grow new demand sources need to be found.
“As a result, local developers are increasingly turning to foreign buyers as a significant proportion of demand for higher-end projects in the CBD.”
Read the full JLL report here. The part about the residential property market in Bangkok is on page 54.