Luxury Detached Housing Market of Bangkok

At the same time as the luxury detached housing market in Bangkok Metropolitan Area has experienced an increase in supply, many have expressed their anxiety over saturation in the market. Though, with strong demand for luxury houses, comparatively large amount of supply would not set the market into much dilemma, should the fresh supply grow at a deliberate speed.

There were more than 5,200 luxury single houses in around 70 projects across BMR as at the end of July 2008. The average sales rate was approximately 61% with projects that were launched before 2008 observed an average sales rate of around 76%.

In general, the market has done relatively well. Demand has increased in response to Thailand’s strong economic ground rules and low interest rates which now allow consumers with a domestic income of only 110,000 baht to pay for a 7-million-baht house. And very significantly, demand is from consumer's end and there have been only a few speculators in this segment of the market. Regardless of the fact that there were approximately 40% of luxury single houses left over unsold, the greater part of unsold houses was in recently launched projects that would take some time to be captivated.

390 houses were sold monthly on an average and as per this sales rate, the number of unsold units would be zero in nearly 5 months. Though, utilizing this average sales rate to estimate the definite amount of time for houses in the existing projects to be completely sold could be deceptive.

It might take much more time for a number of units the accessible luxury detached housing projects to be sold due to a comparatively less favored location, kind of houses and project conception. In addition, as there are several fresh luxury housing projects are about to be launched, consumers will have more alternatives and the average number of unsold houses in the market will certainly be elevated.