Bangkok Q3 luxury condo sales hit record lows since 2021

There were no new launches during the quarter.

Bangkok’s luxury condominium sales volume in 3Q23 dropped to the lowest level since 2021 due to no new launches, political uncertainty and increased interest rates, a JLL report said. 

Year-to-date volume for 2023 totalled approx. 1,000 units. Notable new sales were seen in five projects, and one project achieved a complete sell-out.

Here’s more from JLL:

The unsold rate for existing Luxury projects decreased slightly to 4.3% with more than 3,100 available units. The Prime apartment vacancy rate also decreased to 6.3%. While international demand for buying remained limited, international travel resumption boosted activity in the foreigner’s rental market.

Future supply to total over 5,600 units

No new projects were launched or completed in 3Q23. Luxury condominium stock in Bangkok’s CBA stood at 72,800 units. Looking forward to 2027, there are more than 5,600 luxury units from 19 projects in the pipeline set to be completed.

Prime apartment stock in Bangkok decreased by 64 units to 4,743 units in 3Q23. Three projects were closed for major renovations, including The Pentacles, Baan Phansiri and The Pavilion Place. Apart from these, the refurbishment of The Pentacle II is the only proposed project scheduled to open in 2024.

Rents hit an all-time high along with capital increases

Capital values for Luxury condominiums in Bangkok recorded an increase both on a quarterly and yearly basis in 3Q23. The price increase was observed across 22 existing projects. In addition, the inflation in development cost is expected to drive the capital values further upward.

Bangkok’s CBA remained a sought-after location for rentals. In 3Q23, the rents for Luxury condominiums and Prime apartments in the CBA continued to show improvement. This was driven by the return of expatriates and strong local demand.

Outlook: Luxury market to improve as economy and tourism recover

As international travel resumes, the foreign buying and rental markets are anticipated to be more active over the next 12 months. This should boost sales volumes across the market, with a majority of the buyers being local. However, the supply influx during this period should drive the unsold rate upwards above 5%.

Highly anticipated projects like One Bangkok Residences and Soonthareeya Ratchadamri are priced at the top end of the market. This is likely to pressure the market yield in the near term.

Note: Bangkok Residential refers to Bangkok's high-end and luxury residential market.