Buying luxury condominiums in Bangkok

Bangkoks luxury condominium market will become more active this year and the new supply will continue to be limited, according to leading international property consultants CB Richard Ellis.
The high-end and luxury markets, which faced a slight moderation in 2007 mainly due to the low market sentiment, will become more active in 2008. Last year, the main focus in the Bangkok condominium market was in the mid-range market where projects are located close to the skytrain or other mass transit system. This segment will continue to grow and become more competitive.
Investors know that the free land plots in prime central areas are very limited growth and land prices have led to a reduction in the supply of new luxury units in those areas, while the demand for central city living is rising. Prices of condominiums in the city continues to grow, since the market recovery in 2003, with an average of 10-12% per year for new projects.
According to Ms Aliwassa Pathnadabutr, managing director of CB Richard Ellis, "We concluded that with the increase of construction, and the value of land in the central areas of the city, it will be difficult to develop new free market for high-rise condominiums priced below 100000 baht per square metre in major areas, such as upper Silom, Sathorn (within a radius of 1 km from Lumpini park in the Silom and Sathorn Road), internal wireless road, Sarasin Road, Rajdamri Road, Langsuan and Ploenchit roads, as well as activities to Sukhumvit Road Thonglor in good areas near skytrain stations. Lumpini Park saw in the center of the main Central Business District (CBD) in Bangkok, an area covering a radius of 1 km from the park and is one of the most sought-after places where free land is not good enough.
Prices of newly launched high-end and luxury condominiums in these areas range from Baht 100,000 to Baht 178,000 per square metre, depending on product and location. Most of these newly launched projects have sold over 60% of their units in 2007 and include such developments as Hansar Rajdamri. The prices of units at the Athenee Residence, a newly completed condominium project on Wireless Road, have appreciated by over 40% in the 3 years since the projects launch in 2004