Posh low-rise market eyes recovery
The luxury low-rise housing market remains robust, with signs of recovery popping up last month after a drop from March to April, as the segment has real demand and was less affected by the outbreak, says the head of a consultancy.
Aliwassa Pathnadabutr, managing director of CBRE (Thailand) Co, said this segment delayed buying decisions during the early stages of the outbreak as buyers were worried and could not visit project sites.
"They have resumed project visits since last month and sales recovered since last week," she said.
"If a second wave of the outbreak emerges, but remains under control after restrictions are eased, the overall residential market will return in the second half."
After the virus is controlled, homebuyers in the luxury segment will be more concerned about health, well-being, social distancing, space, function and technology at home.
Developers should launch projects with attractive features to boost demand after the virus, said Ms Aliwassa.
Suphicha Nutsuwanpol, business office director at property developer Enrich Group, said the company continued focusing on low-rise housing development in western Bangkok.
This weekend the company plans to launch a luxury single detached house project, The Marq Exquisite Ratchaphruek-Charansanitwong, worth 1.7 billion baht on a 23-rai plot on Prannok-Phutthamonthon Sai 4 Road.
"It is a large-scale project so we need to seek a joint venture partner," said Ms Suphicha, a third-generation family member of Rangnoktai Group, the bird's nest beverage company that diversified into property 15 years ago.
She said Enrich Group has a joint venture with Saibu Gas Co, a Japanese gas firm based in Fukuoka and founded in 1930, with a 51-49 ratio in The Marq Exquisite project.
Yukinori Michinaga, president of Saibu Gas Co, said the company was interested in property development business in Thailand as the country had the strongest growth in Southeast Asia.
"Outside Japan, Thailand is the second country where we have invested in the property business after the Philippines," Mr Michinaga said in a video conference from headquarters.
The joint venture project will have 65 three-storey units with a usable area of 600 square metres on a plot sized from 100 sq wah.
Each will have a house organising idea based on renowned Japanese organising consultant Marie Kondo.
According to CBRE, the luxury single detached house market in western Bangkok was one of the most balanced markets as supply was gradually launched.
In 2017, the number of high-priced, low-rise house construction permits in that location totalled 243 units, rising to 541 units in 2018 and 753 units last year.
But such units in eastern Bangkok jumped from 1,772 permits in 2017 to 3,308 in 2018, before declining to 1,529 units last year, said CBRE.