The luxury real estate sector is defined differently across varying markets. Property values, resident incomes and area development and infrastructure all play their part in determining a real estate market. For example, Bangkok has a significantly higher top-end and the cut-off point for buyers compared to smaller markets like Koh Samui with lower affordability. So, when half the homes on the market are suddenly marketed as “luxury real estate in Thailand” the definition of the word starts to lose its meaning.
In the real estate sector, where the accurate description can draw buyers to a property, using the correct term is crucial. The term luxury is used to describe everything from an ultra-sleek five-bedroom home in one of Bangkok’s most sought-after neighbourhoods to a converted one-bedroom warehouse with open-plan living and modern appliances on the Chaophraya River.
How can you correctly interpret how luxury is defined in your area, and how can you leverage that information to equip yourself as a homebuyer and seller in Bangkok, Phuket, Pattaya, Samui, Hua Hin, Chiang Mai and beyond? There are no easy answers, but having a thorough, insider-level knowledge of the industry will help. So, let us take a more in-depth look at what the luxury real estate sector is all about.
It is vital to understand the features that characterise “luxury real estate in Thailand” before you invest. Why? Because a high price tag alone will not automatically place a property in this coveted category. A luxury property is about more than bricks and mortar, it must be imbued with an overall sense of exclusivity, desirability and uniqueness. If looked at another way, people who can afford this kind of real estate are looking for something that is perceived as superior, and they aren’t afraid to pay a premium to get it.
Beyond the home itself, high-end buyers want easy access to nearby luxury activities as well, such as luxury shopping, dining and entertainment. Not to mention being nearby to other high-end developments. Luxury likes good company! A trophy address and views do not hurt either, such as the Magnolias Boulevard in Ratchadamri overlooking the Royal Bangkok Sports Club.
Like everybody, high-end buyers want privacy, security and convenience. Fortunately for them, they can get all that, and more, on a grander scale. With high-end budgets comes beauty inside and out, from custom architecture and bespoke design to immaculate attention to detail and luxurious finishes.
What else do luxury buyers seek in their real estate? Well, top of the list would be a chef’s kitchen, infinity pool, outdoor living space, wine cellar, multiple car spaces, spacious living quarters, separate maid quarters, walk-in wardrobes, free-standing bathtub and/or Jacuzzi and so on. And that is just for their city residence, in the countryside or at the beach, the list is even longer!
Whether you are buying or selling, you should remove the word “luxury” from your lexicon and focus on clear-cut features, amenities, services, location and so forth of your desired investment. At the end of the day, what you consider luxury might be very different from someone else and vice-versa. A property is worth what you’re willing to pay for it, whether that be a pittance or a princely sum.