A FEW more petite city center luxury housing developments are being unveiled in the second half of this year after four projects were launched in the first half, Nalinrat Chareonsuphong, managing director of Nexus Property Marketing Company said this week.
Developers continuously introduce these posh housing schemes but the total does not add up to a lot because each one usually has only five to 20 units.
“In the first half of this year new luxury housing supply in the city center only totaled 26 units from four projects and this is not a lot.”
Among the five to six luxury housing developments being unveiled in this year’s second half is Charn Issara’s recently launched Issara Residence Rama 9 with Major Development Plc also likely to introduce two such projects soon.
These swanky residences are priced from 30 to 60 million baht and are usually built on 35 to 50-60 square wah plots with homes on plots smaller than 50 wah being either townhouses or twin houses.
“The product is super luxury – they give super prime grade materials for floor, walls and ceiling.”
Ms Nalinrat does not believe that land prices, which is a key factor determining the pricing point of a project, could rise substantially from the end of this year to next year because they have already risen a lot and if they rise anymore it would reach a point where people would not be able to buy luxury and high-end properties.
“Last year Nexus handled 749 Residence project, this is in very good location in Sukhumvit soi 49. But when the developer launched the second project, 649 Residence, in the same soi this year, land price had risen quite a bit – around 10%.”
When the toss up is between buying a penthouse or a house, the differing benefits should be weighed. With penthouses one gets a lot of common facilities and superb view from the top floor. However the compromise is a smaller space because the current minimum price in downtown area is 300,000 baht a square meter.
“If it’s a single house or a luxury townhouse in the city center, for a 50 square wah plot this works out to be 100,000 or 120,000 baht a square meter.”
Although there are luxury housing estates in suburban areas too such as Charn Issara’s recently launched Baan Issara Bangna near Megabangna, Ms Nalinrat pointed out this is a different type of product aimed at customers based in Bangna.
“There are other projects in the 30-40 million baht range in Bangna such as Narasiri.”
TOP: Ms Nalinrat does not believe land prices could climb substantially in the near future.
INSET: An artist’s rendering of 649 Residence project in Sukhumvit soi 49.
By Nina Suebsukcharoen