[Bangkok Real Estate] Bangkok home prices have risen sharply over the past two quarters, and demand for luxury homes in Bangkok has been strong.

Thailand's economic outlook is strong, and housing prices in Bangkok have risen sharply

According to Wichai Wiratkaphan, acting director of the Government Housing Bank’s Real Estate Information Center, prices for new homes and apartments in Bangkok and its surrounding areas have risen steadily over the past two quarters as the costs of land, building materials, and labor have increased.

In the second quarter of 2021, the price index for newly constructed homes stood at 129.7, up 1.9 from the same period last year. In particular, prices for Thai-style villas in Bangkok, as well as in Nonthaburi, Pathum Thani, and Nakhon Pathom provinces, rose significantly, with a price index of 129.1—a 2.5 increase compared to the same period last year. For townhouses, the price index stood at 129.9, up 0.8 year-over-year. Wichai noted that prices for this type of housing continue to rise.

Newly built apartments showed a similar trend, with the price index reaching 155.1 in the second quarter—an increase of 2.2 compared to the same period last year and a rise of 0.3 compared to the previous quarter.

Thai Developer Launches Luxury Homes in Bangkok to Attract Foreign Buyers

Wongsakorn Prasitvipat, managing director of Property Perfect, expects demand for luxury homes in Bangkok to rise as Thailand becomes a business hub for many foreign companies. He noted that many wealthy individuals hope to own a large residence near Suvarnabhumi Airport and revealed that as many as 40% luxury homes have already been snapped up by foreigners.

Among these foreign buyers, 30% are from China, while the remaining 10% are from other parts of the world. Some Chinese businesspeople have even invested as much as 160 million baht to purchase lakeside luxury homes in the Kingkaew area near the airport. Wongsakorn Prasitvipat noted that the starting price for these lakeside mansions is approximately 100 million baht, while homes farther from the lake start at around 30 million baht.

In addition, Property Perfect is preparing to launch a new 112-hectare project under the Masterpiece brand, with unit prices ranging from 30 million to 80 million baht. Meanwhile, another real estate company, Sansiri, has also confirmed the strong momentum in the luxury housing market: its 6-billion-baht Narasiri Krungthep Kreetha luxury project sold out completely in just one month.

Among Sansiri’s luxury real estate projects, Thai villas priced at 50 million baht are particularly popular and are selling out faster than any other property type. Anat Kittikulmethi, the company’s deputy general manager, revealed that Sansiri plans to launch three more luxury residential projects in 2023, with prices ranging from 35 million baht to 115 million baht. The projects are named BuGaan Pattanakarn, BuGaan Phra Ram 9, and BuGaan Krungthe-Kreetha.

Meanwhile, another well-known Thai real estate company, Land & Houses, has also quickly responded to market trends by launching luxury residential projects worth 100 million baht in the Krungthep Kreetha and Pinklao areas. Specifically, unit prices for the Nirvana Collection Krungthep Kreetha project range from 80 million baht to 150 million baht.

Proud Real Estate also shares this optimism about the luxury housing market. Their newly launched Vi Ari project is located on Soi Aree 3 in the Saphan Khwai area, The project consists of only six luxury homes, with starting prices as high as 83 million baht per unit—a clear indication of the company’s strong confidence in the luxury housing market.