Bangkok expects 10 new prime residential projects by end-2024

These projects will yield 2,000 units.

By the end of 2024, ten projects with 2,000 units will be completed in Bangkok, according to a JLL report. The pre-sales rate dropped to 63% with negative absorption in the quarter. Foreign buyers persisted, while locals adopted a cautious wait-and-see approach by shifting towards renting.

Top-tier products entering the market will propel capital values up to THB 152,000 per sqm. Moreover, with unchanged interest rates, it will further drive rental demand and push up rents. Market yields should remain steady at 5.0% through 2024.

Here’s more from JLL:

Demand for prime condominiums improved slightly q-o-q but remained below the three-year average amid slow economic growth. The loan rejection rate for higher-end products (THB 10–20m) rose to 30%, yet the increase in foreign buyer demand persisted.

The apartment vacancy rate saw a marginal uptick to 5.2%, as some renovations have been prolonged. However, there was a positive change in net absorption, signalling ongoing strong rental demand with a modest rise in expats and tourists.

All new launches are in the top-tier segment to target HNWI

The completion of Supalai Icon Sathorn added 720 units to the prime condominium stock. Three luxury projects were launched during the quarter, totalling 864 units, with an average price of THB 350–400k per sqm.

YOLK Residence (24 units) and The Knight Sukhumvit 31 (27 units) were added to prime apartment stock in the quarter, with both being pet-friendly following the trend of pet humanisation during the pandemic. Prime apartment stock stood at 4,700 units.

Prices and rents maintain their positive momentum

Capital values grew steadily by 2.4% q-o-q, reaching THB 148,200 per sqm. The upward trend in prices was influenced by the escalation of input costs such as land prices, development costs and interest rates. 

As renting has become an economical option, demand led to a 1.5% q-o-q increase in rents for prime condos, reaching THB 701 per sqm, per month. Overall, prime condominium yields remained stable at 5.0%.

Note: Bangkok Residential refers to Bangkok's high-end and luxury residential market. Data is on an NLA basis.