The Bangkok market for super-prime condominiums will continue to grow this year but at a much slower sales pace, according to Knight Frank Thailand.

Frank Khan, executive director and residential head, said 2016 was another outstanding year for Bangkok’s prime and super-prime condo market, with strong demand and high price growth despite the spillover effect from the slowing economy.

On the supply side, developers with land banks in prime areas found the segment to be more suitable for development, which could generate higher-than-average returns on plots with higher land-acquisition costs.

On the demand side, buyers in this segment were mostly affluent individuals who do not rely on home loans. There is a lot of demand from Hong Kong buyers in this segment.

This year, six Bangkok condo projects have been added to Knight Frank’s Bangkok prime and super-prime condo lists.

Prime Sukhumvit retained the largest share of the market, with 597 units entering the market – 236 of which belonged to the super-prime market.

These units are from Khun by Yoo on Thong Lo and Vittorio on Phrom Phong.

Central Lumpini saw 513 units entering the market from two super-prime projects – 98 Wireless on Wireless Road and 28 Chidlom on Chit Lom Road.

None of the new projects from the Sathorn and Riverside areas this year qualified as prime or super-prime.

The prime and super-prime condo segment remained the most resilient of the country’s property market, with strong demand and price growth compared with the overall Bangkok and Phuket markets.

For the prime segment, the accumulated sold-rate at the end of the year stood at 75.4 per cent, with 382 units sold.

For the super-prime, the accumulated sold-rate fell for the second year in a row to 53.6 per cent from 59.3 per cent at the end of year, despite a very high number of first-hand transactions – 284 units sold this year.

Mostly responsible for the decline in the sold-rate were two projects that could not commence a full project launch and promotional campaign while the country mourned the passing of His Majesty King Rama IX.

The two were 28 Chidlom with 436 units and Vittorio with 88 units.

Without these two projects, the accumulated sold-rate for 2016 would have been 66 per cent.

Source: The Nation