In the real estate market over the past 2-3 years, the Luxury segment has been continuously growing. Previously, residents of Bangkok could hardly imagine condominiums priced at an average of 550,000 THB per square meter, but it has finally become a reality. So, what is driving developers to collectively invest in Super Luxury condominiums? The answer lies in the relatively low price competition.

What qualifies as Super Luxury?

            CBRE has defined Super Luxury condominiums as those priced from 250,000 to 300,000 THB per square meter and above. This means that buyers are no longer just looking for a place to live; they are purchasing as a status symbol that signifies a higher social standing. Naturally, for this type of buyer, the interpretation of Super Luxury must provide emotional benefits, being special, luxurious, and superior, allowing buyers to genuinely feel the essence of Super Luxury. Developers typically showcase this luxury through uniqueness and differentiation in both design (Product) and location (Location).


 

Uniqueness and Differentiation

            Buyers in the Super Luxury segment are certainly seeking experiences that cannot be found in standard residences. Developers often create added value through co-branding with globally recognized brands, whether in lifestyle or other areas. They also delve into the lifestyles and needs of Super Luxury clients, personalizing the offerings in terms of common area allocation and services to convey emotional benefits that allow clients to feel their elevated social status.

 

Design (Product)

            Buyers often have brand loyalty, and this extends to project design as well. Super Luxury residences are typically designed by renowned or widely accepted designers, with concepts and stories behind them. The materials and furnishings are carefully selected from well-known or globally recognized brands.

            Additionally, projects must offer comfort and privacy, such as a limited number of units, more parking spaces than units, or dedicated parking for supercars, as well as large windows in every unit that provide views.




Location

            As the saying goes, the principle of condominium development hinges on Location, Location, Location, especially for Super Luxury projects that must be situated in truly prime areas. These locations should have amenities that are unmatched, providing a safe and luxurious environment in terms of lifestyle and neighborhood social status, or be areas with limited land availability that cannot be replaced.

Which locations cluster Super Luxury projects?

            Reflecting on the three factors mentioned above, it is clear that Location is the most challenging aspect to develop and is the primary factor that determines whether a project can be classified as Super Luxury. Other factors can be developed independently, but location cannot.

            Searching for a condominium priced between 20-30 million THB requires careful consideration from location to the interior of the project. Even projects in the 20-30 million THB range, or what we refer to as Super Luxury, are filtered from the most prime locations. In Bangkok, there are only a few areas deemed suitable for Super Luxury condominiums. According to data from TerraByte, condominiums in the 20-30 million THB range are primarily located in three main zones: “Lumpini - Tonson”, “Thonglor”, and “Riverside”.

 

Thonglor: The Luxury of Lifestyle

            It is hard to deny that Thonglor is the most prominently growing area along Sukhumvit. This is due to its charm as a hub for high-end lifestyle, offering dining, drinking, and entertainment options that cater to residents from morning until late at night (or even into the next morning). Additionally, it is bustling with Thailand's wealthy residents who have homes in this area. Therefore, it is no surprise that Thonglor is lined with premium restaurants and shops, as it is a favored spot for the affluent to spend their leisure time.

Riverside: The Luxury of View

            No matter how many roads are built or how many train lines are created, it is unlikely that anyone could imagine digging a new river. Thus, the view of the Chao Phraya River's curves has become a rare sight that everyone desires to possess, as it cannot be found elsewhere. It is no wonder that the banks of the Chao Phraya River are home to luxury projects and 4-5 star hotels, as this location offers experiences that no other area can replicate.

Lumpini - Tonson: The Luxury of Neighborhood

            This is a location that cannot be overlooked, as Lumpini - Tonson has become an Icon of Bangkok Super Prime Area. This is evidenced by the new projects in this area that consistently break price records and generate buzz. With land parcels nearly exhausted, projects in this area have become rare treasures for those with superior social status.

            Besides the difficulty of finding land for development, the Super Prime Area status of this location is also derived from its surrounding high-status neighborhoods. This area is home to several embassies and high-end amenities across all dimensions, whether in residential, hotel, office, lifestyle, or hospitality sectors, all flagship projects of their respective industries, such as Central Embassy, BDMS Wellness, or Grade A office buildings like Park Ventures. It must be noted that no other location in Bangkok offers such a high-level community and environment.

            In addition to the differences in the environmental aspects of the location, one should not overlook the surrounding projects to confirm that this area is truly Super Luxury, not just luxurious on a project-by-project basis. Among the three locations, TerraBKK views Lumpini - Tonson as the only zone surrounded by Super Luxury projects, including the zone with the most Rare item land parcels, leading to the emergence of Leasehold projects.



            According to data from TerraByte, condominiums in the “Lumpini - Tonson” zone are priced at 300,000 THB per square meter and above. If it is a Leasehold project, it will be priced about 20-30% lower than Freehold projects in the same location. However, if we consider future value appreciation, the graph below shows that Leasehold projects will appreciate more slowly than Freehold projects, especially as the 30-year contract expiration approaches, at which point the price will drop significantly.

            In contrast, Freehold projects, which have no contractual obligations, combined with the Super Prime area of Lumpini - Tonson, lead to exponentially increasing resale prices year after year. TerraBKK recommends that if there are still Freehold projects available at reasonable prices in the Lumpini - Tonson area, they should be seized quickly.



            Recently, the TONSON ONE Residence project, the latest Freehold development on a beautiful land plot in Tonson Alley, has reserved exclusivity with only 80 units available, starting at 20 million THB for a 57 square meter unit. This is a 29-story high-rise condominium that features every unit as a “corner unit”, allowing for expansive city views, along with an impressive parking ratio of 146%, or approximately 117 cars, making it one of the top projects in the Super Luxury segment for parking availability.




            TerraBKK sees the Tonson One Residence as outstanding in terms of “high privacy”, with only 80 units and each unit featuring a private lift, eliminating the need to share elevators with other residents, as well as private living spaces for residents seeking privacy. All of this caters to the high privacy demands of Super Luxury residents, which is one of the top priorities for this segment.



            For those interested in the Tonson One Residence, the project will begin pre-sales on June 9. You can register for special privileges at http://tonsonone.com/ or call 091-979-6161.