Author: gqSbgCfmna

Despite the global economic slowdown, Bangkok’s ultra-luxury condo market continues to grow, fuelled by sustained demand from Thailand’s wealthy elite and foreign investors, according to property consultancy Colliers Thailand.

Phattarachai Taweewong, research and communication director at Colliers Thailand, said top-end condos serve as both investment assets and status symbols, offering wealth preservation and long-term capital appreciation.

“Ultra-luxury units are concentrated in prime zones, such as Thong Lor–Phrom Phong–Ekkamai, Wireless–Lang Suan–Lumpini, Sathorn and the Chao Phraya River area, where demand from both local and international buyers remains strong,” he said.

GLOBAL BRANDS RAISE THE BAR

New developments increasingly feature partnerships with global hospitality and design names, such as Aman and Porsche Design, redefining Bangkok’s upper tier.

Large units, often ranging from 300 to over 1,000 square metres, cater to end-users and multi-generational living.

This focus on genuine buyers has helped to maintain stability despite volatile global conditions, said Mr Phattarachai.

The Porsche Design Tower Bangkok set a record last year at 1 million baht per sq m, with penthouses fetching more than 1.4 billion baht each, standing among Asia’s highest prices.

While the mainstream condo sector remains soft, the top segment continues to attract deep-pocketed buyers from Thailand and abroad.

Many view Bangkok as a safe haven comparable with Singapore, Hong Kong and Dubai.

MORE PLAYERS JOIN THE RACE

Mr Phattarachai said Bangkok’s luxury market is evolving into a regional hub. Units priced between 500 million and 1 billion baht continue to sell steadily, supported by both end-user and investment demand.

Listed developers including Sansiri, SC Asset Corporation, Noble Development, Quality Houses, Proud Real Estate and Ananda Development are increasing their presence in the segment. Several new projects are planned for 2026.

Among them are Sansiri’s project on Sarasin Road, Ananda’s luxury tower on Rama IV Road, and an 11-unit condo on Sukhumvit Road.

A joint venture between City Realty and Hong Kong’s Swire Properties also reflects long-term confidence.

Private and family-owned firms are entering the ultra-luxury market, introducing greater design diversity.

New players include CG Capital of the Chirathivat family, 1.6 Development of the Chearavanont family, Nailert Group, and Swiss-backed Helvetic Thai.

“Their boutique projects emphasise architectural identity, privacy and craftsmanship, adding variety to a sector long dominated by listed developers,” Mr Phattarachai said.

STEADY MOMENTUM

Units priced above 300,000 baht per sq m remain limited in supply but resilient in performance. Only 6,600 units, worth about 205 billion baht, have been launched in the past decade.

After the pandemic slump, this segment saw a rebound in 2024 with nearly 1,000 new units. Colliers expects momentum to continue, with more than 1,000 units forecast in 2025–26, mainly from large developers.

Three projects will headline in late 2025: Still Sukhumvit by SC and Tokyo Tatemono; InterContinental Residences Bangkok Asoke by CG Capital; and Upper House and The Wireless Residences by City Dynamic.

CORE LOCATIONS DOMINATE

Over 80% of ultra-luxury supply sits in central districts, including Sukhumvit, Thong Lor, Chidlom and Sathorn, where proximity to mass transit, dining, retail and healthcare sustains strong prices.

Riverside projects such as Banyan Tree Riverside and The Residences at Mandarin Oriental Bangkok cater to buyers seeking privacy and scenic value.

Emerging areas like Ekkamai and Phrom Phong offer more affordable entry points.

However, the Wireless–Chidlom–Ploenchit corridor remains Bangkok’s “golden mile,” anchored by projects like 98 Wireless and Sindhorn Residence.

Land prices have surpassed 4 million baht per sq wah, underscoring scarcity and sustained investor demand.

Three real estate associations have asked the next government to extend the lease period for residential properties from 30 years to 60 years, as a new generation of potential homebuyers can no longer afford to purchase them.

Prasert Taedullayasatit, president of the Thai Condominium Association, said extending the leasehold period would enable tenants to obtain mortgages covering up to 100% of the property value, compared with the current 60-70%.

“For many people who cannot afford to buy a home, long-term leasing is a practical alternative,” he said.

“However, most do not have sufficient savings to secure financing for long leases.”

Mr Prasert said the current 30-year lease term, which typically can be renewed for another 30 years, does not qualify for mortgages as easily as a single 60-year lease. A 60-year lease offers security comparable to freehold ownership, he said.

This proposal is in addition to several others already submitted to the current government led by Prime Minister Anutin Charnvirakul.

As the Anutin administration is focusing on cost-of-living issues and is expected to dissolve parliament early next year, the associations plan to submit this request to the next government, said Mr Prasert.

“The proposal to extend the lease period could be considered controversial and politically sensitive. It may affect voter sentiment, so the current government is unlikely to act on it before the election,” he said.

“This proposal would be more appropriate for the next, more stable administration to consider.”

Other proposals previously submitted to the government include expanding the eligibility for reduced transfer and mortgage fees beyond residential units priced up to 7 million baht, allowing all price levels but with the fee waiver capped at the first 7 million baht of the property’s value, said Sunthorn Sathaporn, president of the Housing Business Association.

The associations also urged policymakers to cut the policy interest rate by 0.25-0.5 percentage points, extending the reduction to real lending rates in order to strengthen purchasing power.

In addition, the groups recommended the government provide mortgage guarantees to help homebuyers access financing and reduce rejection rates.

To ease the financial burden on the public, the associations also advised a 50% reduction in land and building taxes for 1-2 years.

The two associations and the Thai Real Estate Association are holding the House & Condo Expo at Queen Sirikit National Convention Center until Nov 2, featuring more than 1,000 projects nationwide worth over 700 billion baht from 150 developers. The organisers expect 4 billion baht in sales from the four-day event.

Property firm Capstone Asset Co is capitalising on momentum in Phuket and the emerging Phangnga market, with plans to develop a Marriott-branded residence and hotel in Phuket, a resort in Natai, and provide advisory services for a mixed-use project in Khao Lak.

Chief executive Titiwat Kuvijitsuwan said Phuket is not only a tourism destination, but also an attractive location for residential and rental investment, drawing short-stay travellers, long vacation tourists and working professionals.

“The Phuket residential market is substantial,” he said. “Long-term stays are rising, driven by executives, business owners, remote workers and those planning to spend their retirement in Phuket.”

While Phuket remains appealing for residential development, competition has intensified as the market has matured, requiring developers to offer unique and differentiated products rather than relying solely on prime locations, said Mr Titiwat.

Following the company’s development of Tonson One Residence in Bangkok, where the condo market has slowed, Capstone earlier this month signed an agreement with Marriott International to bring the Autograph Collection brand to its first project in Phuket.

Peylaa Phuket Autograph Collection Residences will be the first Autograph Collection Residences location in Asia-Pacific and the 15th worldwide, with Marriott managing long-stay rentals for investment buyers.

“Marriott is a global brand that helps us reach buyers worldwide,” he said. “Its standards, from design to construction, provide long-term confidence, assuring buyers and investors that the brand will enhance value and credibility.”

One of Marriott’s requirements, which sets it apart from typical condos, is the installation of sprinklers in every unit in addition to smoke detectors, as well as strategically placed WiFi routers to prevent signal dead zones.

“Marriott selecting us as a partner is a strong endorsement,” said Mr Titiwat. “They choose developers with a strong capital base, solid reputation and proven financial track record. We must maintain healthy cash flow and net worth at all times.”

The branded residence is to form part of Peylaa Phuket, a mixed-use development on a 12.6-rai plot in the Bang Tao area.

The branded residence component, worth 4 billion baht, occupies 10 rai and features 400 units.

Unit sizes range from one-bedroom units of 45 square metres to two-bedroom units of 83–86 sq m.

All units will be fully furnished, with prices starting from 7.2 million baht, averaging 170,000 baht per sq m.

The project will be launched next month, with the company expecting to sell 70-80% of the units before completion in 2027.

There will also be a 126-room hotel worth 1.5 billion baht operated by Marriott under the Autograph brand and four shophouses priced at 30 million baht each.

Capstone has begun construction of a 150-room hotel on a 23-rai beachfront plot on Natai Beach in Phangnga, with an investment of more than 2 billion baht. The project is scheduled for completion in 2027.

The company is also providing advisory services to a landlord owning 1,500 rai in Khao Lak, Phangnga, for the development of a mixed-use project named Matalay.

The project will feature six hotels, an international school, a convention and exhibition centre, a wellness centre, a camping area, and a surf village and school.

SCX Corporation, the recurring-income asset management arm of SET-listed developer SC Asset Corporation, plans to invest 2 billion baht to develop a second hotel in Pattaya, and is seeking a joint venture partner for the project.

Rachod Nantakwang, chief executive of SCX, said the hotel will be developed on a leasehold plot in Pattaya city, with the company working on a high-rise tower design.

“Recurring-income assets are capital-intensive,” he said. “We plan to co-invest with partners for all projects of that type, and eventually exit by selling the asset to a real estate investment trust [REIT].”

For hotels, the optimal time for a REIT sale is after three years of operation, once occupancy reaches around 80%, while warehouses typically mature for sale within a year as occupancy fills faster, said Mr Rachod.

The new Pattaya hotel will be announced next year and is scheduled for completion between 2029 and 2030, he said.

The company’s first hotel, The Standard Pattaya Na Jomtien, opened on Tuesday and is a joint venture with SET-listed contractor Syntec Construction, which holds a 55% stake, with a total investment of 1.3 billion baht. SCX holds a 45% stake.

The 161-room property is located on a beachfront leasehold plot under a 30-year contract.

The Standard Pattaya Na Jomtien features a ballroom and meeting facilities, targeting 70% independent travellers and 30% corporate guests.

“The tourism market has evolved,” said Mr Rachod. “Travellers now seek unique and stylish hotels rather than traditional ones. The Standard Pattaya is enjoying over 91% occupancy on weekends through the end of the year.

“Although Chinese travellers have been slower to return, Pattaya continues to attract visitors from Europe, Malaysia and Singapore. When Chinese tourists come back, they may be fewer in number but spend more, which aligns with our target market.”

He said Phuket and Bangkok are SCX’s next target destinations, with plans for 2-3 more hotels, each with at least 200 rooms.

Projects could be greenfield and also brownfield, with developments completed faster.

The parent firm SC also holds a plot in Hua Hin, but will wait for road construction to finish before developing a hotel there. Chiang Mai, however, is not on the company’s radar.

Mr Rachod said SCX will co-invest with a partner in VOCO Bangkok Siam, a new 350-room hotel in the Siam area, with a 2.2-billion-baht investment, scheduled to open by 2029.

The hotel will be SCX’s fourth, following the 78-room YANH Ratchawat, wholly owned by SCX and opened in 2023, and the 306-room Kromo Bangkok, Curio Collection by Hilton, opened last month in a joint venture with Japanese property firm Daiwa House.

“This year, 17–18% of SC’s revenue is expected to come from SCX, faster than projected, with a 2030 target of 25% –half from hotels, half from warehouses and offices,” he said.

SCX Corporation, the recurring-income asset management arm of SET-listed developer SC Asset Corporation, plans to invest 2 billion baht to develop a second hotel in Pattaya, and is seeking a joint venture partner for the project.

Rachod Nantakwang, chief executive of SCX, said the hotel will be developed on a leasehold plot in Pattaya city, with the company working on a high-rise tower design.

“Recurring-income assets are capital-intensive,” he said. “We plan to co-invest with partners for all projects of that type, and eventually exit by selling the asset to a real estate investment trust [REIT].”

For hotels, the optimal time for a REIT sale is after three years of operation, once occupancy reaches around 80%, while warehouses typically mature for sale within a year as occupancy fills faster, said Mr Rachod.

The new Pattaya hotel will be announced next year and is scheduled for completion between 2029 and 2030, he said.

The company’s first hotel, The Standard Pattaya Na Jomtien, opened on Tuesday and is a joint venture with SET-listed contractor Syntec Construction, which holds a 55% stake, with a total investment of 1.3 billion baht. SCX holds a 45% stake.

The 161-room property is located on a beachfront leasehold plot under a 30-year contract.

The Standard Pattaya Na Jomtien features a ballroom and meeting facilities, targeting 70% independent travellers and 30% corporate guests.

“The tourism market has evolved,” said Mr Rachod. “Travellers now seek unique and stylish hotels rather than traditional ones. The Standard Pattaya is enjoying over 91% occupancy on weekends through the end of the year.

“Although Chinese travellers have been slower to return, Pattaya continues to attract visitors from Europe, Malaysia and Singapore. When Chinese tourists come back, they may be fewer in number but spend more, which aligns with our target market.”

He said Phuket and Bangkok are SCX’s next target destinations, with plans for 2-3 more hotels, each with at least 200 rooms.

Projects could be greenfield and also brownfield, with developments completed faster.

The parent firm SC also holds a plot in Hua Hin, but will wait for road construction to finish before developing a hotel there. Chiang Mai, however, is not on the company’s radar.

Mr Rachod said SCX will co-invest with a partner in VOCO Bangkok Siam, a new 350-room hotel in the Siam area, with a 2.2-billion-baht investment, scheduled to open by 2029.

The hotel will be SCX’s fourth, following the 78-room YANH Ratchawat, wholly owned by SCX and opened in 2023, and the 306-room Kromo Bangkok, Curio Collection by Hilton, opened last month in a joint venture with Japanese property firm Daiwa House.

“This year, 17–18% of SC’s revenue is expected to come from SCX, faster than projected, with a 2030 target of 25% –half from hotels, half from warehouses and offices,” he said.

CG Capital Advisory, the private equity arm of Central Group, plans to invest over 5 billion baht to develop five hotels in Phuket and Samui, alongside the launch of the InterContinental Residences Bangkok Asoke, a 5.5-billion-baht condominium project.

Phoom Chirathivat, managing partner and co-head of CG Capital, said that one of the hotels will be in Samui, while the remaining four will be in Phuket, with one featuring a water park.

“From our initial investment budget of 10 billion baht, we have so far committed 8.5 billion baht in equity across seven projects since our establishment last year,” he said. “The remaining 1.5 billion baht will be allocated to one or two additional projects.”

One of the upcoming investments, to be made within the next 18 months, will be a branded residence project in Bangkok, developed on a leasehold plot.

Of the seven committed projects, two are branded residences in Phuket and Bangkok. The Phuket development, The Standard Residences Phuket Bang Tao, was launched last year and has achieved 85% sales, with Thai buyers accounting for 60% of total units sold.

The Bangkok project, InterContinental Residences Bangkok Asoke, valued at 5.5 billion baht, will be on a 1.5-rai plot on Sukhumvit Soi 16. It will be the world’s first standalone InterContinental-branded residence.

The development will feature a 32-storey tower with 88 units, ranging from two-bedroom units of 139 square metres to a duplex penthouse of 547 sq m, priced between 40.8 and 245 million baht, or an average of 350,000 baht per sq m.

According to property consultancy CBRE Thailand, Thailand led the Asia-Pacific region and ranked fourth globally, following the United States, United Arab Emirates (UAE) and Mexico, in terms of the number of branded residences as of the fourth quarter of 2024.

In Bangkok, which ranked seventh among global cities, there are 11 branded residence projects, comprising nine five-star hotel-branded and two non-hotel developments.

“However, only three of the hotel-branded residences are freehold, and they have recorded very strong sales, with 93% sold and just 33 units remaining on the market,” said Artitaya Kasemlawan, head of residential sales projects at CBRE Thailand.

She said super-luxury and branded residence condos in downtown Bangkok generate an average rental yield of 4.8% a year, with the highest yields reaching 7.9%, while Grade-A serviced apartments in Sukhumvit enjoy rental growth of 8.5%.

“Sukhumvit remains Bangkok’s most sought-after address for expatriates, accounting for 65% of demand, compared with 18% for Silom–Sathorn and only 9% for Central Lumpini and Siam,” she added.

She said the average asking price of freehold, future off-plan units in the high-end and above segments in Central Lumpini and Sukhumvit around 2014 were roughly 210,000 and 175,000 baht per sq m, respectively.

During 2020–2022, Central Lumpini surged ahead, reaching 480,000 baht per sq m, while Sukhumvit stood at 250,000 baht per sq m.

By the second quarter of 2025, prices stood at 368,571 baht per sq m for Central Lumpini and 366,000 baht per sq m for Sukhumvit.

Despite growth in the industrial property sector, the market for warehouses outside industrial estates has slowed, as large users like e-commerce companies increasingly invest in their own facilities, according to property consultancy Cushman & Wakefield Thailand.

Phongphan Phloiphet, director of logistics and industrial, said warehouses outside industrial estates were in oversupply in the third quarter, with some recording vacancy rates as high as 30-40%.

“Competition among logistics players over the past 1-2 years has driven down service fees, putting pressure on warehouse rental rates. Some operators have exited the market, leaving an oversupply of space,” he said.

Large e-commerce companies, which are major warehouse users, have increasingly invested in their own facilities rather than relying on third-party operators, further increasing available warehouse space.

Mr Phongphan said the warehouse market saw heavy investment over the past three years, largely driven by Chinese investors.

Supply expanded rapidly to meet the high demand from e-commerce during the pandemic, leading to the current oversupply situation.

Additionally, ready-built warehouses (RBWs) have faced pressure from the US tariffs, which caused developers to hold back new RBW launches in the third quarter of 2025, as they awaited greater clarity on import duties.

As of the third quarter this year, Thailand’s RBWs market tallied roughly 6 million square metres, with a vacancy rate of 17.2%, down from 19% in the second quarter due to no new RBW supply being launched during that period.

The highest vacancy rate was in the eastern zone, particularly Samut Prakan, which recorded a vacancy rate of 21.5% across roughly 3.51 million sq m of space.

This was followed by the Eastern Seaboard zone with a 16.3% vacancy rate of some 1.6 million sq m and the Central zone at 14.2% of 881,497 sq m.

New RBW supply is also in the pipeline, totalling around 459,000 sq m from five projects — four in Samut Prakan, and one in Bangkok — scheduled for completion between the fourth quarter of 2025 and the fourth quarter of 2028. Four of these projects are located in industrial estates.

“New investment in warehouses should be approached with caution, particularly for those outside industrial estates, where demand is largely driven by factories within the estates, which are currently on the rise,” Mr Phongphan noted.

In the third quarter of 2025, serviced industrial land plots (SILPs) within industrial estates tallied 221,458 rai, with the vacancy rate falling to 7.13% from 8.69% in the previous quarter.

The average land price edged up to 8.04 million baht a rai, compared with 7.87 million baht a rai in the second quarter. Meanwhile, an additional 16,297 rai of new SILPs were under construction.

The highest average land prices were recorded in Samut Prakan, Chachoengsao, and the northern part of Chon Buri, ranging between 12-14 million baht a rai.

In the lower areas of Chon Buri and Rayong, they ranged from 5.5-7.5 million baht a rai while in Ayutthaya prices averaged around 6 million baht a rai.