Luxury Homes Sales Surge Despite Market Slump

In a surprising twist, ultra-luxury houses priced at over 100 million baht have seen a remarkable surge in sales, amassing over 450 billion baht in the past decade. According to a recent report by Colliers International, approximately 394 new units have been introduced to the market since 2015.

While the broader property market in Thailand is struggling due to high loan rejection rates, the ultra-luxury segment remains resilient. Phattarachai Taweewong, Research Director at Colliers, explains that buyers in this segment often pay in cash, circumventing the need for loans.

A Colliers survey indicates that around 350 houses priced over 100 million baht were in the sales pipeline as of September. Notably, 41.14% of these properties are located in prime downtown areas such as Sukhumvit, Aree, Bang Na, Rama IX, and Phattanakarn.

Phattarachai further revealed that the projected sales rate for these luxury homes stands at 52.28%, leaving only 168 unsold units. The primary clientele includes high-net-worth individuals such as executives, business owners, foreigners, and celebrities.

In Bangkok, the northern fringe zone boasts the highest sales rate for homes priced over 100 million baht, at 65.08%, followed by the eastern fringe, western fringe, inner city, and southern fringe.

Colliers anticipates the addition of over 30 new units in the 'ultimate' class next year, signaling developers' confidence in the segment's continued growth. Phattarachai emphasizes that location is a key factor for buyers, with many properties occupying rare, central city plots developed by top-tier brands.