CBRE, a global real estate consulting firm, announced that its residential sales for 2021 surpassed 12 billion baht, despite multiple waves of the COVID-19 pandemic. The demand for luxury single houses and super luxury condominiums has been particularly strong due to changing customer preferences and purchasing behaviors.

Ms. Athisaya Kasemlawat, Head of Residential Sales at CBRE Thailand, revealed that although the real estate market has been affected by the ongoing economic slowdown and the unresolved COVID-19 crisis, CBRE managed to achieve residential sales of over 12 billion baht in 2021. This success is primarily driven by changes in demand and customer behavior, with a growing need for more living space and higher quality projects.

“The sales figures came from condominiums at 42%, luxury homes at 39%, and vacation residences at 19%. Compared to 2020, luxury home sales in 2021 increased by 69%, marking three consecutive years of growth. Sales of condominiums represented by CBRE also rose by 29% from the previous year. In 2020, condominium sales had significantly decreased due to concerns over the severe COVID-19 situation. Meanwhile, vacation residence sales in 2021 dropped by 4% compared to the previous year, as there were fewer vacation residence projects launched last year and no new projects introduced. However, the vacation residence market had previously seen a substantial increase in sales,” Ms. Athisaya commented.

CBRE has found that the demand for residential properties among Thai customers remains strong, aligning with the company’s focus last year on presenting high-quality housing and condominium projects in prime locations that meet the needs of customers looking for actual residences. Most customers are spending more time at home for various activities with their families, and the trend of working from home has led them to prioritize living space. Customers are increasingly researching and comparing options before making a purchase decision, paying more attention to details, which is a positive development that encourages developers to focus on quality and standards. This is a beneficial outcome of the COVID-19 crisis, and if developers can adapt to these changes, they will create new business opportunities.

In the single house market in urban areas, CBRE found that single houses located in easily accessible locations are highly sought after, especially among high-end customers. Despite relatively high land prices, the value of quality living and convenient transportation keeps demand strong. Last year, CBRE successfully closed sales of single house projects at an average price of 56 million baht per unit, indicating strong demand and purchasing power in the urban single house market, with the highest sale reaching 267 million baht.

“In addition to the Thai customer market, last year CBRE also observed demand from Chinese investors interested in high-end residential properties in Thailand, particularly single houses in urban areas close to business districts with convenient access to Suvarnabhumi Airport. The demand for single houses ranges from 30 million to 150 million baht, with some seeking properties priced between 300 and 400 million baht. Most of these buyers are Chinese nationals who have lived and worked in Thailand for a long time, as well as those looking for investment opportunities in Thailand. They prefer houses with large plots, spacious gardens, open living areas, high ceilings, large rooms, multiple parking spaces, private swimming pools, and beautifully decorated move-in ready homes,” Ms. Athisaya added.

Regarding the condominium market, although it appears less vibrant overall due to most developers delaying project launches because of the COVID-19 situation, CBRE achieved a 106% increase in condominium sales from super luxury projects (priced at 350,000 baht per square meter and above, with unit prices starting from 20 million baht). This market still has strong purchasing power and demand for high-quality residences in prime urban locations, along with services managed by leading hotel brands. The supply of super luxury projects remains limited, while demand continues to be strong, with the highest unit sale closing at 220 million baht and the highest price per square meter at 479,000 baht.

In addition to the super luxury condominium market, another interesting segment where CBRE has seen good sales is condominiums located near educational institutions, which offer good rental yields and attract investors seeking long-term returns and potential future value appreciation. In a sluggish economic environment, returns from other investment forms may be highly volatile, making real estate investment in good locations with clear tenant demographics and stable rental yields an attractive option.

For the vacation residence market, last year saw a decrease in momentum, following a 388% increase in sales in 2020. In 2021, there were no new projects launched in leading locations such as Pattaya, Khao Yai, Chiang Mai, and Hua Hin, as developers continued to delay new project launches.

In terms of the foreign market, analysis of customers transacting through CBRE revealed that the proportion of foreign customers increased from the previous year to 9% of all luxury homes and condominiums sold, comprising 41% condominiums, 35% single houses, and 24% vacation residences. The top three foreign customer nationalities were Chinese at 38%, American at 18%, and Dutch at 9%.

“For 2022, CBRE aims to focus on single house and super luxury condominium projects, emphasizing online marketing through social media. This year, we will focus on building relationships with our customer base, managing data to enhance communication channels to better meet customer needs, and targeting new customers with purchasing power who are interested in super luxury single houses and condominiums, including foreign customers looking to buy homes in urban areas. If the COVID-19 situation stabilizes, CBRE expects the overall residential market to begin adjusting and gradually show signs of recovery within this year,” Ms. Athisaya concluded.