Bangkok Super-luxury condo demand holds strong
From right, renditions of Sindhorn Tonson and Sindhorn Langsuan, two new luxury condo projects to be developed by Siam Sindhorn Co.
Demand for super-luxury condominiums remains healthy, with purchasing decisions driven by soaring land prices in the central business district and completed projects, says the Crown Property Bureau.
Serbpong Kiattvisanchai, project development director of Siam Sindhorn Co, a property development arm owned by the Crown Property Bureau, said buyers in the super-luxury segment hardly feel the pinch from changing economic conditions. Buyers in this segment, rather, makes purchasing decisions when they find the products that meet their needs, he said.
"Some buyers in this segment moved quickly because of soaring land prices in the central business district, which pushed up residential prices," he said.
"Compared with freeholds, sales prices at leasehold condominiums are much lower."
Siam Sindhorn last week launched Sindhorn Tonson, a 17-storey condominium located on a 1.5-rai plot on Sarasin and Ton Son roads, comprising 59 units sized 85-140 square metres and priced 220,000 baht per sq m, from 19 million a unit for a 30-year leasehold plus 30 years. The project is 40% sold.
"A buyer yesterday read in the newspaper about soaring land prices in the Lang Suan area and called us to buy a two-bedroom unit priced 40 million baht for his daughter," said Mr Serbpong.
Other factors affecting purchasing decisions include completed projects, as buyers in the super-luxury segment prefer seeing completed units.
As many developers will launch more condominium supply in the high-end segment in the central business district, Siam Sindhorn revised its development plan for Sindhorn Village on Lang Suan Road.
Some portions of Sindhorn Village that had initially been targeted as mid-priced leasehold condominiums will now function as a hotel and serviced apartments.
Siam Sindhorn will also launch a new condominium for sale under leasehold contracts, Sindhorn Lumpini -- previously Sindhorn Langsuan.
Sindhorn Tonson and Sindhorn Lumpini are part of Sindhorn Village, which include the 85%-sold Sindhorn Residences and future projects like Sindhorn Lumpini.
Sindhorn Lumpini boasts an eight-storey residential tower and two-tower luxury hotel.
Earlier plans for a museum and medical centre have been scrapped, as there is a concert hall on Wireless Road and a large medical hub being developed by SET-listed Bangkok Dusit Medical Services, Thailand's largest private hospital group, at the Park Nailert site on Wireless Road.
"We revised our plan to generate more recurring income and avoid adding too much supply to the area," said Mr Serbpong.
According to the revised plan, recurring income will account for 55% and property sales the rest.