Bangkok – 14 June 2022 – CBRE, the leading international property consultant, reveals that despite Thailand’s rocky economy and the long- tail effects of COVID-19, the sales performance of branded residences has been robust. This has been due to behavioral changes among high-end property buyers who demand quality residences that feature iconic designs, outstanding services, and world-class facilities in prime locations. Branded residences also show promising profitability in the long run, another focus for this group of buyers.
Ms. Artitaya Kasemlawan, Head of Residential Sales – Project at CBRE Thailand, commented that “The total sales of super luxury condominiums in 2021 by CBRE Thailand was 27% of all residential project sales, of which 84% were branded residences managed by five-star hotel brands and 16% were other super luxury projects. CBRE witnessed a 503% increase in branded residence sales from the previous year due to rising demand and limited new supply, clients’ loyalty towards trusted brands, and prime locations, all of which contributed to a record sales high.”
Currently, there are 19 super luxury residential projects in Bangkok, of which seven are branded residences that continue to gain interest among high-end buyers and investors with high-purchasing power. These projects can generate higher sales than super luxury projects which are not managed by luxury hotel brands.
According to CBRE’s 2021 analysis of the purchasing behavior of its buyers and investors for branded residence projects, 44% bought them for long-term investment to obtain rental returns, generate capital gains, or retain as assets, 33% purchased them as second homes, and 23% bought them for their own use. The branded residence projects for which CBRE has closed sales have attracted both Thai and foreign purchasers, with 95% being Thai and 5% foreign.
Ms. Artitaya added, “At the present, buyers in the luxury market are more meticulous in choosing projects. Their key considerations include location, product quality and the convenience provided by professional five-star hotel brands in the long term. This gives them confidence that their property will be taken care of to a world-class standard over the long term. In addition, investors who buy to rent are even more confident that these five-star hotel-managed branded residences will be in high demand in the rental market, which is why – in addition to the greater convenience they offer – such residences top the list for both Thai and expatriate investors.
The branded residence that CBRE Thailand’s Residential Project Sales team currently represents is Dusit Residences, the sole project in Thailand in which the developer also owns a world-class five-star hotel brand. The project is a part of Dusit Central Park, a mixed-use development from a joint venture between Dusit Thani Group and Central Pattana. This mixed-use development is valued at THB 46 billion and situated on a 23-rai plot of land in the core CBD of the Lumpini and Silom-Sathorn areas, which serve as an interchange point for both road and rail transport links. It is connected to all major business districts and is opposite Lumpini Park, an abundant green area in the center of Bangkok and a major factor drawing in both Thai and foreign buyers. The show gallery of Dusit Residences is now open to visit and thus far the project has received very positive responses from buyers.
“In 2022, CBRE believes super luxury branded residences will continue to receive considerable interest from both local and international buyers looking for top-class properties in the Bangkok CBD, as the service standards of a five-star hotel in this type of project has great potential for own-use and as an investment opportunity, elements that meet the needs of today’s clients,” concluded Ms. Artitaya.