There have been many changes to the property market in 2018 to beginning of 2019 where we saw a bigger demand for mixed property buildings. These are buildings with both commercial and residential property for sale. What we have also seen with the new laws coming in mid-2019 where deposit rules for Thai buyers kick in there has been many low offers on the market as people try and shift mid and lower tier properties off their books.
Super luxury developments still see high demand as these are not affected by the new rules as this buyers’ market are those who have cash and do not require a mortgage bond. Land values in Central Bangkok are becoming very expensive and many developers are looking to get maximum value from the land they are going to develop. The high end market tends to buy irrespective of the economic conditions as there is no mortgage bond or banks involved so they tend to ride through any economic storm on the horizon.
There is a brand new high-end development for the 2019 year which is the Sindhorn Tonson property project. This is a 17 story building with 59 units for sale. Units are between 85-140 Sqm and priced at around 220,000 baht Sqm. These units are going for 19 million THB a unit for a 30-year leasehold plus 30 years. This property development in Lumphini is very popular as it is across the road from Lumphini Park in Central Bangkok. Speak to a property attorney in Thailand about leasehold agreements as they need to be registered with the Land Department in order to be valid if the agreement is for longer than three years. Being leasehold property as of writing 40% of the units have already found a buyer. With land in the CBD become very expensive we are also seeing more leasehold property entering the market.
If you are going to buy a super luxury apartment offplan in Thailand, then you should have a due diligence report done on the property as well as on the developer. This may save you a loss on your investment. Most super luxury apartments are only bought when completed because of the value of the property. Leasehold agreements are now also growing in popularity with mid-priced condominiums which now are functioning as a hotel as well as serviced apartments.
Future property projects in the Lumphini is the Sindhorn Lumpini project which is going to developed. This will also be leasehold agreements more likely than not. Going with the need for mixed property this development is going to be an eight-storey residential tower and two-tower luxury hotel. The mixed property and leasehold sales ensure that the property company keep a steady stream of income and also keeps supply out of the market to keep it stable.
These are developments in the Lumphini area of Bangkok. Search this website for other property developments in the area and keep abreast of the market changes.