Bangkok is a city that has seen a huge development in the last 10 years. This primate metropolitan city stands as one of the most populated in the world with an approximated 14 million inhabitants at certain times of the year. As the capital of Thailand, Bangkok serves as the central point for the countries government and economy and many of the nation’s wealthy elite reside here, in addition to a number of expats from other countries.
A major area where Bangkok has seen development is the property market. Due to the increase in population, and the wave of expats entering the country, there is a real need for condos and apartment developments. The city is ever expanding and thus the property market is following suit. Bangkok condominium price trends are positive, as land prices continue to increase in desirable areas.
A new trend is also emerging; the development of high-end luxury properties to attract the rich and elite of Thailand and Asia. This type of property sells for top dollar and caters to a certain type of clientele that makes up the high society of the country. Furthermore, nationals from countries such as China, Japan and Singapore who want to experience the finest Bangkok lifestyle are emigrating here and taking advantage of these superb developments. So why exactly are prices soaring the luxury developments in Bangkok? What is driving their demand and why is so much money being poured into their construction?
Reasons For Luxury Condo Price Increases
When considering the apparent increase in cost and demand for luxury property developments there are a range of contributing factors. To gain a clear idea of the luxury Bangkok property market you must understand each reason and how it is affecting the property landscape. The following are some of the main reasons for the soaring prices for luxury developments in the Thai capital:
Improvements in the city are attracting wealthy Thai citizens
Bangkok is a thriving city with a great deal to offer in terms of recreational pursuits and public amenities. The city has undergone a transformation and is a fantastic place to work and live. Traditionally high-income earners would live outside the city centre in suburban mansions. Today, however, this same type of Thai citizen is seeing the benefits of living in the trendy neighbourhoods of Bangkok and trading their suburban mansions for luxury developments in the heart of the city.
The mass condominium market has become saturated
As mentioned above, the condominium market has been the driving force behind the Bangkok property industry. In recent years wave after wave of condo developments have been built and this has actually resulted in the market becoming saturated in areas. Bangkok currently has a more than satisfactory amount of condominiums to satiate demand, therefore, property developers are looking for other avenues of work. With limited development space and land and the saturation of condos, luxury properties are seen as a financially viable alternative.
Influx of super wealthy foreign nationals
Due to the improvement in lifestyle and available amenities in Bangkok, the capital city has become an attractive location for Asia’s wealthy elite. In recent years Bangkok has experienced an influx of citizens from nations such as Hong Kong, China, Japan and Singapore including a large portion of wealthy individuals seeking to experience the high life Bangkok has to offer. Last year, many luxury developments quickly sold their quota allocated to foreigners (49%) – a sign of the changing trend. With this increase in interest from other Asian countries, the need for luxury developments has never been as high.
Investment in properties from foreign organisations
Finally, the country has seen huge interest from foreign businesses who wish to muscle in on the Bangkok property boom and try to make a profitable investment. Examples of recent investment from overseas businesses include joint ventures between the Japanese Mitusi Fudosan together with the Thai Ananda development; the Shinwa group with Thai Woraluk Property, and Thailand’s Singha Estate in conjunction with Hong Kong Land Group.
Luxury Property Developments in Bangkok
Now that you understand why the luxury property market is soaring in Bangkok, it is important to look at some of the examples of the high-end developments that are causing such high price tags. The following are just some of the most prestigious and sought after developments that have graced the city of Bangkok in recent years:
Created by the property group Sansiri, this 25-storey high condominium is composed of 77 luxury homes with a value of over 8 billion BHT. Combining a fantastic location, world-renowned architecture, and an unparalleled level of quality, this development is one of the most prestigious in the country with prices per square meter averaging at 550,000 BHT.
The MahaNakhon skyscraper is one of the most noticeable and prestigious in Bangkok and Pace development have recently completed a series of stunning luxury apartments that start at prices as high as 65 million BHT. These apartments represent the pinnacle of luxury and have been created using only the finest materials whilst providing stunning views of the city.
Nimit Langsuan
Another development by the prestigious Pace development company, Nimit Langsuan is located on Langsuan Road in close proximity to Lumpini Park. This development is composed of 187 ultra-luxury residences and features a rooftop owners club and a beautifully landscaped greenhouse garden. The whole skyscraper is covered in a modern glass façade the likes of which have not been seen in Bangkok before.
As you can see, there is a real need for luxury developments in Bangkok due to a number of different factors. The city is prospering and is now a thriving metropolis that is attracting a wealthy class of citizen. Furthermore, nationals from other Asian countries are moving to Bangkok and want to live the high life in ultra-modern developments. Moreover, foreign investment means that the property market has plenty of interest and the demand for high-quality residences is set to only increase.
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