The luxury housing market in Thailand. Overview and trends

The luxury housing market in Thailand. Overview and trends

The directions of the luxury housing market in the first half of 2022 have been announced. The market for houses priced from 10 million baht and more expensive still continues to grow. Although, in general, the economy in the country is still in a state of recovery.

Most of the elite buildings are located in the suburbs of Bangkok (the Eastern zone of Bangkok, the Western zone, the Northern zone), where there are still large plots of land for development and good transport interchanges providing convenient access to the business center.

In the first half of 2022, 945 building permits were issued for projects for houses in the price range from 10 million baht and above.

TOP-3 are in the price range of 10-20 million baht (47%), followed by a price range of 21-30 million baht (27%) and a price level above 50 million baht (10%).

As for demand, in the first half of 2022, it was found that in the segment of houses worth 10 million baht and most of all, 17,283 units were sold out of a total volume of 20,794 units, which is 83%. The sales rate has increased by 6% since the end of 2021 and increased by 14% compared to the same period of the previous year (69%). In the first half of the year, it was found that a total of 1,944 new homes were sold.

The demand for houses with a price from 10 to 20 million baht increased to 9,813 units, followed by houses with a price from 21 to 30 million baht and 31-40 million baht with a demand for 3,098 units and 2,278 units, respectively.

As for the highest level of sales, it is a house priced above 100 million baht due to limited supply - the highest level of sales at 91%, followed by houses priced from 41 to 60 million baht (sales level of 90%), while houses priced from 61 to 70 million baht are in the lowest demand.

The most popular were houses with a price from 10 to 20 million baht.

While the most interested foreign buyers are Chinese married to Thai citizens. They buy houses through an agent and on behalf of a legal entity. These buyers still have high liquidity and income. And most of them are bought for cash, about 80%.

Positive dynamics is expected in the situation in the luxury housing market with prices from 10 million baht and above.

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