InterContinental Residences Bangkok Asoke deserves attention from foreign buyers because it sits at the intersection of three themes: branded residences, low-density luxury and the Asoke-Sukhumvit 16 lifestyle corridor. IHG announced the project with CG Capital in October 2025 as the first standalone InterContinental branded residences globally, with 88 luxury residential units planned for completion in 2029. The official project site positions it as a rare address in the heart of Bangkok, close to Asoke, Sukhumvit and Benjakitti Park.
For overseas buyers, the key question is not whether the brand is recognisable. It is whether the ownership, location, building concept and likely resale audience justify the premium that branded residences usually command. Branded living can be attractive in Bangkok because it gives foreign buyers an easier reference point for service standards and management expectations. But the investment still needs to be tested like any other condominium.
Why Asoke still matters
Asoke is one of Bangkok’s most practical inner-city locations. It connects BTS Asok and MRT Sukhumvit, sits close to office towers, hotels, Terminal 21, Queen Sirikit National Convention Center, Benjakitti Park and the wider Sukhumvit lifestyle network. For residents who travel frequently, work in the city or want easy taxi, rail and retail access, Asoke remains highly functional.
Sukhumvit 16 adds a quieter residential layer compared with the main intersection. It is still central, but the address can feel less exposed than living directly on a major traffic corner. That balance is important for luxury buyers: they want access, but they also want privacy and a sense of retreat.
What the branded residence angle changes
A branded residence is not simply a condominium with a famous name. The brand should influence service culture, resident experience, design discipline and long-term management expectations. In a city with many luxury projects, a global hospitality association can help a building stand out to international buyers who may not know every Thai developer or district nuance.
The risk is that buyers overpay for the name and under-check the fundamentals. The brand does not remove construction risk, market-cycle risk, common-fee obligations or resale competition. Buyers should still review the developer, licence position, completion timetable, ownership documentation, building specifications, service scope and future operating costs.
The project is positioned as the first standalone InterContinental branded residences globally.
Who the project may suit
InterContinental Residences Bangkok Asoke is likely to suit long-horizon buyers more than short-term yield hunters. The unit count, branded positioning and central location point towards owner-occupiers, regional families, corporate principals, buyers seeking a Bangkok pied-a-terre and investors who prioritise asset quality over maximum percentage yield.
It may also appeal to buyers who value Benjakitti Park access. Bangkok luxury demand increasingly favours projects that can offer both city convenience and wellness-oriented daily routines. A park within practical reach changes the rhythm of living in Asoke, especially for residents who work from home, exercise outdoors or want green space without leaving central Bangkok.
Due diligence points
Service scope and cost
Hotel-style services sound attractive, but buyers should understand exactly what is included in common fees and what is charged separately. Concierge, valet, housekeeping coordination, private dining support, maintenance response and branded standards can all affect the real cost of ownership.
Unit planning
Luxury buyers should focus on liveable volume, not only square metres. Check ceiling heights, window placement, storage, kitchen usability, maid or service areas, lift privacy, parking allocation and whether the plan suits family use or occasional Bangkok stays.
Completion and handover
With completion scheduled for 2029, buyers should understand the payment schedule, construction milestones, escrow or contractual protections, assignment rules and what happens if personal plans change before transfer.
Resale audience
A branded residence premium needs a clear future buyer pool. The likely resale audience may include international families, Thai high-net-worth buyers, regional investors, executives and long-stay residents who value Asoke access. The unit size and price should fit that audience realistically.
The buyer case depends on branded service, privacy, location and long-term liveability rather than only yield.
Investment strengths
Recognisable global hospitality brand association.
Central Sukhumvit 16 location with BTS, MRT and park access.
Low-density positioning with only 88 planned residences.
Potential appeal to long-stay regional buyers and Bangkok-based executives.
A branded service story that is easier for international buyers to understand.
Risks to price carefully
The main risk is paying for a luxury narrative without sufficient resale margin. Branded residences can be less comparable than standard condos, which makes valuation more judgement-based. Buyers should compare not only nearby condos, but also other Bangkok branded residences, super-luxury freehold buildings and completed projects with proven management.
A second risk is yield expectation. Large luxury units often produce lower percentage yields than smaller investment condos, even when the absolute rent is high. Buyers should not use mass-market yield assumptions for a branded residence. The stronger case is usually lifestyle utility, capital preservation and long-hold scarcity, not quick rental return.
Buyer takeaway
InterContinental Residences Bangkok Asoke is a serious project for buyers who want branded living in a central, globally understandable Bangkok location. Its appeal is strongest when viewed as a long-hold luxury asset or personal-use residence with rental optionality. It is less suited to buyers seeking the highest short-term yield or a simple low-ticket investment.
IBP can help compare InterContinental Residences Bangkok Asoke with other Sukhumvit, Lumphini and riverside luxury projects. Explore our project reviews or contact IBP Real Estate for a branded-residence shortlist.
Wireless Road has long been one of Bangkok’s clearest luxury addresses. It sits between embassies, Lumphini Park, major hotels, central retail, offices and the established Langsuan-Chidlom lifestyle zone. The announcement of Upper House Residences Bangkok and The Wireless Residences by Upper House adds a new branded-residence layer to that address story, and foreign buyers should read it carefully rather than simply as another luxury launch.
Upper House Residences Bangkok and The Wireless Residences by Upper House are planned for Wireless Road, one of Bangkok's most established prime addresses.
According to Swire Properties, City Dynamic, a joint venture between City Realty and Swire Properties, together with Swire Hotels, has introduced two ultra-luxury freehold residential towers on Wireless Road. The projects are named Upper House Residences Bangkok and The Wireless Residences by Upper House. Construction was stated to have commenced in April 2025, with completion expected by 2030. For buyers, that long timeline means the decision should be based on developer credibility, location scarcity, brand logic and future exit depth rather than short-term rental yield.
What Has Been Announced
The official announcement describes Upper House Residences Bangkok as a 52-storey tower with 156 units, offering a full Upper House brand experience. The Wireless Residences by Upper House is described as a 71-storey tower with 239 units, with front-of-house services managed by Upper House. The two towers are positioned on Wireless Road with panoramic views towards Lumphini Park and Benjakitti Park, and with access to shopping, hotels, international schools and embassies.
The design team is also part of the buyer story. Swire’s announcement refers to Foster + Partners through F&P (Thailand) Ltd. for architecture, PLandscape for gardens and sky terraces, BAR Studio for Upper House Residences interiors, PIA Interior for The Wireless Residences, and GOCO for wellness facilities. These details matter because branded residences compete not only on location, but on whether the service, design and management system feel coherent over time.
The project combines freehold residential ownership with Upper House hospitality-style service and design positioning.
Why Wireless Road Matters
Foreign buyers sometimes compare Bangkok luxury condos by price per square metre and amenity list. On Wireless Road, the location itself does much of the work. It is one of the few central Bangkok corridors where embassies, mature trees, park access, five-star hotels and high-end residential buildings sit close together. That gives the address a different rhythm from busier nightlife-led parts of Sukhumvit.
For end users, Wireless Road offers prestige and calm without leaving the centre. For investors, the appeal is scarcity. There are only so many freehold opportunities in this part of the city, and buyers looking for park adjacency, diplomatic-district context and international service standards tend to compare a small set of buildings. Scarcity does not remove pricing risk, but it can support long-term desirability when the product is properly executed.
How To Think About The Brand Premium
Branded residences usually ask buyers to pay for more than the physical unit. The premium may reflect design, hospitality services, management standards, global recognition, owner privileges and the confidence that a respected operator will protect the living environment. In Bangkok, that premium must still be tested against resale evidence, common-area costs and whether the brand genuinely improves daily life.
Upper House is associated with a quiet, service-led hospitality identity rather than a loud resort concept. That can fit Wireless Road if the final residences deliver privacy, service discipline and understated design. Foreign buyers should ask how services will be charged, what is included in common fees, which services are optional, how rentals are handled, whether short-term letting is restricted and how the branded standards are protected after completion.
City Dynamic, Swire Properties and Swire Hotels announced the Upper House branded residences partnership for Bangkok.
Who The Project May Suit
The project is likely to suit buyers who want a Bangkok base with long-term personal use value: regional families, executives, high-net-worth residents, collectors of branded residences and buyers who prioritise privacy over immediate yield. It may also suit investors who want exposure to a scarce luxury address, provided they are comfortable with a long completion period and a premium entry price.
It is less likely to suit buyers seeking simple rental yield. Ultra-luxury units can rent well when the tenant pool is strong, but yields are often lower than in smaller mid-market units because the purchase price is high. The investment case is more likely to depend on long-term scarcity, brand quality, foreign-buyer recognition and the depth of wealthy end-user demand.
Due Diligence Questions For Foreign Buyers
Is the unit being purchased under foreign freehold quota, and how will quota be reserved until transfer?
What exactly is covered by the branded residence management agreement?
How are common-area fees, sinking fund and service charges calculated?
Are rentals permitted, and are there restrictions on lease length or tenant use?
What completion protections, payment milestones and defect procedures apply?
How will views, neighbouring development and access routes be protected or disclosed?
What comparable completed buildings support the proposed pricing?
The Buyer Takeaway
Upper House Residences Bangkok is important because it reinforces Bangkok’s move into the global branded-residence conversation. The city already offers luxury condominiums, strong hospitality, healthcare, dining and regional connectivity. A project like this adds a more internationally legible ownership format for buyers who understand hotel-style service and long-term branded management.
The right buyer should still be disciplined. Brand, address and renderings are not substitutes for contract review, payment planning, foreign-quota confirmation and realistic exit analysis. For a foreign buyer, the opportunity is to own into a rare Wireless Road story. The responsibility is to underwrite that story with numbers, documents and a clear holding period.
For help comparing luxury and branded residences, review IBP’s new project previews and request a building-by-building comparison before making a reservation.
Economic Uncertainty, Unsold Inventory, and High Household Debt Weigh on Market
The launch of new residential projects in Greater Bangkok is projected to decline for the third consecutive year in 2025, driven by a growing backlog of unsold units from 2024, economic uncertainty, and elevated household debt, according to Kasikorn Research Centre.
Last week, the research centre forecasted a 0.7% year-on-year decline in new residential supply for 2025, following approximately 61,450 units launched in 2024. This continues a downward trend, as 2024 saw a 39.5% drop from around 102,000 units in 2023, which had already decreased by 5.2% from 107,000 units in 2022. Notably, the 2022 figure represented a 77% surge from the pandemic-era low of 60,000 units in 2021.
In 2024, all housing categories experienced a decline in new supply, with condominiums seeing the steepest drop at 43%, followed by townhouses (41.5%) and single detached houses (20.8%).
Despite the sharp reduction in new project launches, unsold inventory remains high. The centre anticipates that the total number of unsold units will exceed 230,000 units, surpassing the level recorded at the end of 2023.
Weakened Demand Due to Economic Factors
Prasert Taedullayasatit, President of the Thai Condominium Association, highlighted that poor market sentiment throughout 2024 was driven by weakened purchasing power, slow economic growth, and high household debt.
Additional challenges such as geopolitical conflicts, high interest rates, and stringent mortgage lending policies carried over from 2023, making homeownership more difficult. Lending curbs and high mortgage rejection rates further constrained market activity, leading many developers to postpone new project launches.
“The market was further impacted by political transitions in Q3 and widespread flooding in Q4,” said Mr. Prasert. “Additionally, weak investor confidence in the debenture market led several developers to delay their projects.”
Developers Respond by Scaling Back New Projects
Over the past three weeks, five major SET-listed developers—Land & Houses, Supalai, Sansiri, Frasers Property Thailand, and AssetWise—announced plans to launch a total of 85 new residential projects worth 140.9 billion baht in 2025.
These figures represent a 26% decline in the number of projects and a 20% drop in total value compared to 115 projects worth 175.9 billion baht launched in 2024.
Most developers are scaling back their new launches, while some are shifting toward the upper-end market, where purchasing power remains stronger than in the lower-end segment.
Middle- to Lower-Income Groups Struggle with Homeownership
“Thai middle- and lower-income groups are losing the ability to afford homes due to rising living costs and economic pressures,” Mr. Prasert explained. “High interest rates have further weakened purchasing power, while the loan-to-value (LTV) policy has made it more difficult for buyers to secure financing.”
According to Mr. Prasert, Q3 2024 marked the lowest point for the residential market in 13 years, with presales in Greater Bangkok hitting 59.5 billion baht—the lowest level since Q4 2011, during the Great Floods.
Declining Presales Across All Price Segments
By price segment, the sharpest year-on-year decline in presales occurred in units priced below 3 million baht, which plummeted 59%, followed by units priced between 3–5 million baht, down 55%.
Higher price segments also saw declines, including:
7–10 million baht units: Down 33%
5–7 million baht units: Down 24%
10+ million baht units: Down 16-22%
10–20 million baht units: Down 16%
20–50 million baht units: Down 17%
50+ million baht units: Down 22%
Despite ongoing challenges, developers are adjusting their strategies by targeting premium segments, reducing overall project launches, and focusing on projects with higher-value sales potential. However, market recovery remains uncertain, given persistent economic headwinds and financial constraints affecting homebuyers.
With high unsold inventory, subdued demand, and a challenging financing environment, the Greater Bangkok real estate sector faces another tough year ahead in 2025.
Nue Epic Asok-Rama 9 launched over the weekend that just passed. This project was hotly anticipated. It is located in the very popular Rama 9 business district. It is walking distance to the Phra Ram 9 MRT station.
Before this launch event, there were pre-launch sales. These sales were only to clients of certain agencies. Even then, sales were strong due to the good location and attractive pricing. Imagine a freehold condominium in the Rama 9 area for about THB 3.xx million.
Here are some pictures of the launch event.
More than 100 units were sold over the weekend! There are still some available launch units available. If you are interested in a unit, do contact the IBP Real Estate Sales Team at +66 66 112 8862 (WhatsApp) or email [email protected].
New condo launches in Greater Bangkok are anticipated to fall below expectations this year, largely due to sluggish demand amidst economic challenges, according to Colliers Thailand.
Phattarachai Taweewong, Director of Research at Colliers Thailand, explained that the Greater Bangkok condo market experienced a slowdown in the second quarter, driven by modest domestic economic growth and global economic headwinds.
“The Bangkok condo market overall has slowed, primarily due to a lack of strong demand drivers,” he said. “In the mid- to lower-end segments, buyers are facing high levels of household debt, rising interest rates, and a significant rate of mortgage rejections by banks.”
Colliers’ market data revealed that 5,386 new condo units across 15 projects, valued at a total of 35.6 billion baht, were launched in Greater Bangkok during the second quarter. Of these, approximately 1,000 units from four projects in inner-city, high-end segments achieved a sales rate of 65%, while units outside the city centre had a sales rate of just 30%.
In the first half of 2024, 8,674 new condo units, with a total value of 49.3 billion baht, were launched in Greater Bangkok—almost a 50% drop compared to the 15,413 units launched during the same period last year. Despite this significant decline in unit numbers, sales value for the first half of 2024 slightly increased from 48.6 billion baht in 2023, due to a higher concentration of lower-priced units in last year’s launches.
Mr. Phattarachai projected that new condo launches in Greater Bangkok this year will not surpass 25,000 units, falling short of the initial forecast of 30,000-35,000 units made earlier in the year.
“Developers have found that sales in the second quarter were weaker than expected,” he said. “Despite property tax incentives, transfers of residential units are expected to decrease this year compared to last year, mainly due to the continued challenge of mortgage rejections by banks.”
The government has introduced incentives, such as reducing transfer and mortgage fees to 0.01%—down from 2% and 1%, respectively—for residential units priced under 7 million baht. These incentives are set to remain in place until the end of the year.
By the end of the first half of 2024, the inventory of unsold condos in Greater Bangkok stood at around 56,800 units. Given the current demand, it is estimated that it would take approximately 84 months to clear this inventory, compared to 60 months under more favourable economic conditions, Mr. Phattarachai added.
Clients often ask us whether developers will increase their prices as time passes. The answer in most cases is yes. If you made a purchase during launch, the price which you paid for that development is typically lower than what you would pay if you bought into the development after a few years.
An example of this:
Let us take a look at a very popular project in the Rama 9 area. This project is Nue District R9. It is located next to Jodd Fairs, behind Grand Central Rama 9. This area is often heralded as the second central business district with the Sathorn Financial District being the first. Companies like Unilever and Huawei are in this area. So are the Stock Exchange of Thailand and the Chinese Embassy.
Back in 2022, the per square meter of a unit in Nue District R9 was about THB 130,000 to just above THB 140,000 per square meter.
Fast forward to July 2024.
This is the current pricing for the last eight units in the development. The per square meter pricing, before discount, has gone up to about THB 200,000 per square meter. After the discount, the per square meter pricing is averaging at just under THB 200,000 per square meter.
The increase in pricing is more than 30% from the launch.
We make this comparison because we sold units in Nue District R9 in 2022 and today in 2024, a client wants to purchase a unit in the same development.
To summarise, buying a development during launch is advantageous for two main reasons.
Prices are cheaper during launch.
You have more choices when choosing a unit.
To ensure this, may we suggest a few pointers.
Always buy from a reputable developer.
A large local Thai developer that is listed on the Stock Exchange of Thailand. Such developers have holding power and have reputations to maintain. They will not slash prices and will gradually sell units at higher prices over time. There is no time limit for Thai developers to sell out their stock. Nue District R9 is by Noble Development. Noble Development was the developer behind Noble Ploenchit. Noble Ploenchit was completed in 2016. The development was sold out only this year. The developer took their time selling their unsold stock.
Buy a development in a prime location.
The reason why Nue District R9’s pricing increased is because it is located in the Rama 9 financial district. It is within walking distance of Phra Ram 9 MRT Station. There are development plans in the area moving forward. The land that Jodd Fairs is sitting on will eventually become a mixed development with offices and hotels. Yes, we agree that there is a lot of vacant land in Thailand. However, land is extremely limited in the core regions of Bangkok like Siam, Ratchathewi, Ploenchit, Rama 9, Sathorn, Silom, Thong Lor and Ekkamai.
There is a new development in the Rama 9 area called Nue Epic Asok-Rama 9. Prices start from about THB125,000 per square meter. This is significantly lower than the current price of Nue District R9.
The number of new condominium launches in Greater Bangkok is anticipated to be below expectations this year, mainly due to subdued demand amidst an economic downturn, as reported by Colliers Thailand.
Phattarachai Taweewong, Director of Research at Colliers Thailand, highlighted that the condominium market in Greater Bangkok experienced a slowdown in the second quarter of this year, driven by sluggish economic growth in Thailand and a weakening global economy.
“The overall condominium market in Bangkok has decelerated, with a lack of significant demand drivers,” Mr. Phattarachai explained.
“In the mid to lower-end market segment, buyers are grappling with high household debt, elevated interest rates, and a high rate of mortgage rejections from banks.”
Colliers’ market analysis revealed that in the second quarter, 5,386 new condominium units were launched across 15 projects in Greater Bangkok, with a combined value of 35.6 billion baht.
Of these, approximately 1,000 units from four projects were in the high-end segment, located in inner-city areas, and achieved a sales rate of 65%. The remaining units, situated outside the city centre, saw a sales rate of only 30%.
In total, the first half of 2024 saw 8,674 new condominium units launched in Greater Bangkok, with a combined value of 49.3 billion baht. This represents nearly a 50% decline compared to the 15,413 units launched in the same period last year.
Despite the significant drop in the number of units, the sales value for the first half of 2024 showed a slight increase from 48.6 billion baht in the first half of 2023. This was primarily due to the fact that the majority of units launched in the first half of 2023 were in the lower-priced segment.
Mr. Phattarachai anticipates that new condominium launches in Greater Bangkok will not exceed 25,000 units this year, falling short of the 30,000-35,000 units projected in the first quarter.
“Developers observed that sales in the second quarter did not meet expectations,” he said.
“Even with property tax incentives in place, the transfer of residential units is expected to decline this year compared to last year due to banks’ mortgage rejections.”
These incentives include reducing transfer and mortgage fees to 0.01% each, down from 2% and 1% respectively, for residential units priced below 7 million baht. These measures will remain effective until the end of this year.
As of the end of the first half of 2024, the condominium inventory in Greater Bangkok stood at approximately 56,800 units.
Given the current weak demand, it is estimated that it will take 84 months to clear this inventory, compared to 60 months under more favourable economic conditions, Mr. Phattarachai noted.
The State Railway of Thailand (SRT) has announced the commencement of a new international train service connecting Bangkok to Vientiane, Laos, starting July 19. This extension of the existing Bangkok-Nong Khai route will depart from Krung Thep Aphiwat Central Terminal Station at 9:25 PM on July 19, arriving at Vientiane’s Khamsavath station at 9:05 AM the following day.
Upon arrival, passengers can access public transportation options, including vans and taxis, to reach downtown Vientiane, which is approximately 7-9 kilometers away. Notable attractions such as the Patuxai war monument are easily accessible, and travelers can also connect to the high-speed Laos-China railway at Vientiane Railway Station for further travel within Laos or to China.
Ticket prices for a one-way journey from Bangkok to Vientiane are expected to start at around 300 baht for third-class fan seats, with a travel time of approximately 10 hours.
Ekkarat Sriarayanpong, head of the SRT governor’s office, previously disclosed that discussions were held with the Lao National Railways to facilitate the launch of this service and to enhance tourism and logistics between the two nations. The SRT has also provided training to Lao railway officials in areas such as train operations, station management, and ticket sales.
A successful trial run of the service was conducted on May 21, covering stations at Udon Thani, Nong Khai, Thanalaeng, and Vientiane. Ekkarat highlighted the exceptional cooperation between Thailand and Laos in bringing this new service to fruition.
Aspire Onnut Station is a freehold condominium developed by AP (Thailand) Public Company Limited. Aspire Onnut Station is located close to BTS Onnut.
Project Details
Project Location: Sukhumvit Road, Phra Khanong, Khlong Toei, Bangkok 10110
Project Area: 2-3-79.5 Rai
Project Description:
1 Residential Building, 37 storeys and Rooftop Garden
1 Car Park Building, 8 storeys and Rooftop Garden
Number of Residential Units:
696 residential units, 1 shop (ownership belongs to AP ME 18 Co., Ltd)
1 bed: 27.00-32.00 sq m
1 bed plus: 35.00 sq m
2 bed 2 bath: 53 sq m
This is the location of Aspire Onnut Station
Our review of Aspire Onnut Station (Scores are upon 5 ⭐s)
Location ⭐⭐⭐⭐:
The location is extremely prime. It is located very close to BTS Onnut (about 200 meters). The area around this area is generally more residential with a good mix of locals and foreigners. There is a huge Tesco located next to the BTS Station. Century the movie plaza is also located about 350 metres away from Aspire Onnut Station. BTS Onnut is only a few stations away from the more upmarket areas like Thong Lor and Ekkamai. While the prices in this area for rent are lower, the pricing of condominiums is also lower. Therefore, the rental yield is still healthy for a lower capital outlay if you are looking for condominiums in this area. Taking the BTS down to Samrong or further up to Asoke will link residents in this area to the new Yellow Line and the Blue MRT Line.
There are many international schools with very good reputation in this area. Most notably, Bangkok Prep School is a mere 1.9 km away from Aspire Onnut Station. This is a huge draw for expatriates who are in Bangkok with their families. Bangkok Prep School is one of the top international schools in Bangkok.
Quality ⭐⭐⭐⭐:
AP Thailand is a very reputable developer. They are listed on the Stock Exchange of Thailand. Based on the sales gallery, the layout of the rooms and the design of the development is very reminiscent of typical AP Thai projects. A single building with facilities on the top floors of the development. From past experience, projects from AP Thailand are also very well done with minimal defects upon handover. If you are looking for a project that will deliver on what was promised, you should look at projects from AP Thailand. This is not a high-end development in the super luxury category and hence the finishing is not what you would expect from such luxury developments in Chidlom or Ploenchit.
Conclusion ⭐⭐⭐⭐:
The developer profile and the location are huge draws and we highly recommend this development.
The Address Siam-Ratchathewi is a freehold condominium developed by AP (Thailand) Public Company Limited. The Address Siam-Ratchathewi is located 160 metres from Ratchathewi BTS Station. According to Google Maps, the walk is about 2 minutes.
This is the location of The Address Siam-Ratchathewi
Our review of The Address Siam-Ratchathewi (Scores are upon 5 ⭐s)
Location ⭐⭐⭐⭐⭐:
This is the nearest development to Ratchathewi BTS Station which is one station away from Siam BTS down south or one station away from Phayathai BTS up south. Siam BTS is where Siam Paragon is located. This area should be very familiar to you if you have been to Bangkok as a tourist. Phayathai BTS links to the Airport Rail Link which leads to Suvarnabhumi Airport. The connectivity of The Address Siam-Ratchathewi is excellent. You probably cannot get a property with a better location. Perhaps the only minor downside is that the walk to the development is not sheltered. However, that is a really minor point and I am actually nitpicking. Do note that because of the location, the prices for units in this development are also much higher.
Quality ⭐⭐⭐⭐:
AP Thailand is a very reputable developer. They are listed on the Stock Exchange of Thailand. We have dealt with AP Thailand for many years and their developments do deliver. The Address Siam-Ratchathewi is a very high-end luxurious development. This is indicative of our observation of the development as a whole. Also, this series, The Address, is AP Thailand’s high-end luxurious series. However, the disappointing thing about what we observed from the specifications would be that the finishing in the units itself does not match up.
Conclusion ⭐⭐⭐⭐:
The developer profile and the location are huge draws. The only issue would be the finishing and the provided furniture package and appliances. The price is also much higher than other developments in the area. However, the location is an extremely huge draw. We have walked the ground on a few previous occasions. This is a very prime location.
A recent report by Knight Frank Thailand stated that the condominium market in Bangkok in 2018 set a record for the most number of new project launches in the past decade. For 2018, there were about 65,000 units that were released to the market. This represented an 11 per cent increase from 2017 numbers. Most of these units, about 42,000 of them, were released in the 2nd half of 2018. Let us analyse these figures and understand them a little better to make better investment decisions.
1) The bulk of these new launches, in fact about 57 per cent of the 65,000 units, were for developments in the outskirts of Bangkok. These developments are located along the extensions of the Green and Blue train lines.
Our take: We have always advocated buying in prime Bangkok. Most of the supply is happening in the outskirts of Bangkok where land is freely available. As the metro lines are expanded gradually, many developments will market themselves as being close to a train station. Buyers have to be discerning enough to know the locations with rental and resale demand.
2) The proportion of new supply in the Central Business District (CBD) of Bangkok was about 18 per cent or about 11,700 units.
Our take: Land in the CBD is scarce. Prime projects next to train stations in the CBD will sell out fast. The LINE Sathorn, next to Surasak BTS, sold out in 3 weeks. The bulk of which were local Thai buyers.
3) The proportion of new supply in the areas around the CBD was about 33 per cent or about 21,450 units.
4) The locations which developers focused on were
From Asok to Ekkamai
Phahon Yothin (Mo Chit to Khu Khot)
Rama 9 to Ratchadaphisek
Lad Prao to Rakhamhaeng
Charan Sanitwong to Phetkasem
Our take: We still stand by our recommended areas to invest in Bangkok.
5) The take-up rate was about 55 per cent. Condominiums in the CBD had take-up rates of about 51 per cent and the surrounding areas had take-up rates of about 64 per cent.
Our take: These rates are the total rates for all developments. Those that are far away from train stations and from less reputable developers with less quality finishing tend to do poorly in terms of sales as compared to the larger developers.
6) New suburban condominiums enjoyed about 50 per cent sales rate. Popular locations are from Asok to On Nut, Udom Suk to Bearing, Rama 9 to Ratchadaphisek, Phahon Yothin and Thon Buri.
7) The average selling price for all new units in 2018 is THB150,641, down 6 per cent from the previous year. The average price in the CBD was THB250,000, down 8 per cent and the area around the CBD was down 7 per cent to 120,000 baht. The average price of newly launched suburban units increased 3 per cent from 2017 and is up 20 per cent from 2015.
Our take: As Bangkok city expands further outwards, we will see many “cheap” offerings. Many foreigners may find these developments very cheap compared to properties back home. This is especially true for buyers from cities like Hong Kong and Singapore. However, we still advocate understanding the location before making a purchase as some of these locations do not have good rental and resale markets.
July and August were busy months for condominium developers in Bangkok, with 11,600 new units launched, bringing the total to 33,395 for the first eight months of 2018.
The two-month total was 37% higher than for the entire second quarter of this year, and many more developments are in the pipeline for this month. Consequently, the industry is on track to match or exceed the 2017 total of 56,000 units.
Further success will depend on economic conditions, but purchasing power and consumer confidence have been recovering steadily in line with economic growth rates.
Seventy-six percent of all the new condo units launched in the first eight months of this year have been along existing BTS and MRT lines and around 20% along new routes under construction. The relatively low interest in new lines reflects skepticism among developers and consumers about mass-transit construction, which tends to run three years or more behind official schedules.
As well, new condo projects along existing mass-transit lines continue to enjoy high take-up rates among Thai as well as foreign purchasers. For listed developers, sales rates in these locations have averaged around 65% this year.
Sales to foreigners at some condo developments have reached the limit of 49% of the available space, with units fully booked within hours in some cases. Thai buyers’ purchasing power has also been improving, but some buyers remain concerned about political developments and how the economy will fare under a new government if elections take place next year.
Listed developers continue to be the main players in the condo market, responsible for 58% of all new units so far this year. Another 20% have come from well-known non-listed firms, with small and new developers accounting for the rest.
Some 70% of new units launched this year are selling at below 150,000 baht a square meter, as developers believe unit costs of 5 million baht or less are about right.
The housing market is also showing a positive trend, with a pickup in new projects, especially townhouse developments near under-construction transit systems. Listed developers, in particular, have seen brisk sales for their townhouses.
Single detached housing projects with selling prices below 7 million baht per unit have also done well, especially if they are near future mass-transit lines.
Some 7,000 new detached housing units were launched in the first eight months of 2018, with about 70% of the total price at 5 million baht or less. The average take-up rate of 50% is not low for housing projects and is evidence of a positive trend.
