Menam Residences and JLL are actively marketing penthouses targeting the luxury segment, recognizing the opportunity in a market with limited supply. The number of penthouse units has grown by 6-7% annually, leading to an average price increase of 30% over the past five years. The emergence of Branded Residences is transforming the riverside real estate along the Chao Phraya River into a super-luxury market, attracting both Thai and international wealthy buyers to invest in properties in Thailand.

Decha Tangsin, CEO of Menam Residences Co., Ltd., the developer of the luxury Menam Residences condominium located in a prime riverside area, stated that the real estate market along the Chao Phraya River is experiencing significant revitalization. This will notably change living standards, lifestyles, and tourism following the launch of super-luxury riverside projects expected to be completed by the end of this year. This revitalization is making the riverside condominium market vibrant again, with property values rising to match those in the luxury condominium market in the central business district, attracting both domestic and international buyers.

“Particularly for the Menam Residences project, we are using the penthouse units as a flagship for our marketing strategy, viewing the riverside real estate market as luxury to super-luxury. Targeting this specific audience involves unique activities that appeal to niche groups, such as hosting art events in the penthouses. Menam Residences recently organized the 'PENTHOUSE IS ART BY MENAM RESIDENCES', showcasing works from national artists in penthouses, marking the first such event in Thailand. This initiative aims to attract art enthusiasts and collectors while enhancing the aesthetic and uniqueness of the units, which can also increase their long-term value. This type of investment is referred to as 'Passion Investment', creating both emotional value and potential appreciation in the future,” Decha stated.

According to the Thai Real Estate Information Center of JLL, between 2013 and 2017, the overall condominium market in Bangkok saw an average annual increase of 77 penthouse units, or about 6%. This year, there is an expected increase of about 7% or 104 units compared to last year, with 43 of these being from luxury (luxury and super-luxury) projects. By the end of the year, the Bangkok condominium market will have approximately 1,590 penthouse units, with 440 units in luxury projects. Over the past five years, penthouses in luxury condominiums in Bangkok have seen price increases of over 30% and are expected to continue rising, especially in new projects.

Suphin Meechai, Managing Director of JLL, noted that penthouse suites are special units typically found only on the top floors of condominium buildings. They are usually larger and designed with more luxurious materials than other units in the same building. Due to these limitations, the growth of penthouse units is relatively modest. This uniqueness results in higher prices per unit, with current penthouses selling for between 60-300 million baht, depending on location, unit size, and project reputation. The high price per unit means that penthouses have a narrower buyer base compared to other unit types, leading many developers to forgo penthouses altogether, which is another factor limiting their numbers.

It is noteworthy that newly completed penthouses and those scheduled for future completion are mostly found in luxury projects, including condominiums managed by renowned hotel brands (Branded Residences). Upcoming riverside projects expected to be completed by the end of this year include Four Seasons Private Residences Bangkok, Banyan Tree Residences Riverside Bangkok, and The Residences at Mandarin Oriental (ICONSIAM). The higher costs and quality of these projects are significant factors that will drive the average penthouse prices higher.

“I believe these new projects will attract more interest from international buyers in the luxury condominium market in Bangkok, especially those looking to purchase luxury penthouses as collectibles due to their unique features and limited availability. At the same time, penthouses in completed condominium projects are expected to have a higher competitive edge due to the advantages of lower development costs compared to new projects launching in the future,” Suphin stated.

Nontharapas Ponsinkunanon, Head of Residential Business Services at JLL, mentioned that the buyer demographic consists of affluent Thai individuals seeking residences in the central business district for use during workdays or for their children. International buyers are typically those who enjoy traveling to Bangkok for long holiday stays, primarily from Asia, such as Hong Kong and China. Notably, Chinese buyers often purchase properties not only for personal use but also for accommodating relatives visiting Bangkok.

“In recent years, investing in penthouses for rental purposes has not been popular due to high purchase prices, making it difficult for buyers to expect a worthwhile return on investment. Most penthouses currently available for rent are in older projects where owners purchased at lower prices than current listings, allowing them to offer rental rates that tenants can afford. This is one reason why most buyers of new penthouses are purchasing for personal use,” Nontharapas stated.

For clients interested in viewing the 'PENTHOUSE IS ART' event and the penthouses at Menam Residences, which have usable areas of 270-280 square meters and are currently offered for sale at prices ranging from 60-80 million baht, inquiries can be made at 06-2796-0101.

Thank you for the information from www.menamresidences.com