<\/p>

Despite the overall impact of COVID-19 on the real estate market, the "luxury home market" has remained vibrant, partly due to a shift in the lifestyle of high-end buyers. They are moving away from super-luxury condominiums to luxurious homes in the city, as these offer comparable value for their investment.<\/strong><\/span><\/p>

<\/p>

            Ms. Nalinrat Charoensupong, Managing Director of Nexus Property Marketing Co., Ltd.<\/strong><\/span> revealed that the overall luxury home market in the city continues to grow. There is a demand for homes among high-end buyers, referred to as real demand or actual residents, who have shifted their lifestyle during COVID-19 from a preference for condominiums to central city homes. These homes maintain the convenience and luxury of high-rise living while allowing ownership of land and property. Additionally, the decrease in home prices has led to an increase in purchases of luxury homes.<\/span><\/strong><\/p>

            Over the past five years, the "luxury home market" has seen a continuous increase in supply, with 56 new projects totaling 796 units and a market value exceeding 40 billion baht. These projects are typically smaller in scale, targeting a niche market, which attracts more small developers due to the relatively low profit margins compared to operational costs (soft costs). Projects developed by large operators account for 39% of the total supply.<\/p>

            Typically, the sale of these homes may not be very quick, with an average selling period of 2 to 3 years and an average sales rate of 53%. Factors affecting sales vary based on price, suitable location, convenience of the area relative to price, and overall product quality.<\/p>

 <\/p>

<\/p>

<\/p>

 <\/p>

 <\/p>

            Furthermore, the "luxury home market" shows significant price variation per unit, influenced by several factors such as location, land size, house size, and materials used in the project. Prices start from 20 million baht and can exceed 100 million baht. About 42% of luxury home projects are priced between 30 to 50 million baht, while 27% fall within the 20 to 30 million baht range. Historically, homes priced at 20 to 30 million baht have shown better absorption rates due to a broader customer base compared to luxury homes priced at 50-70 million baht.<\/strong><\/span><\/p>

<\/span><\/p>

5 Prominent Locations in the "Luxury Home Market"<\/strong><\/span><\/p>

            The locations of luxury home projects focus on urban convenience, with 90% of the supply located in areas connected to the city center, offering easy and flexible transportation options, not far from the BTS or public transport. Currently, luxury homes are expanding into the Ratchada-Ladprao area and Phahonyothin more frequently. Most projects are located in smaller alleys that allow for easy access, with land development constraints for larger projects resulting in lower land prices compared to nearby areas, providing a market advantage due to differing land potentials. The five prominent locations in the "luxury home market" are:<\/p>

Ekkamai-Ramintra                      26%<\/strong><\/span><\/p>

Sathorn-Rama 3                        21%<\/strong><\/span><\/p>

Sukhumvit                                      20%<\/strong><\/span><\/p>

Ratchada-Ladprao                          17%<\/strong><\/span><\/p>

Phahonyothin-Vibhavadi                       6%<\/strong><\/span><\/p>

 <\/p>

<\/p>

 <\/p>

<\/p>

 <\/p>

<\/p>

 <\/p>

<\/p>

 <\/p>

Nevertheless, the "luxury home market" still has opportunities for continuous growth. Development must prioritize product quality, especially regarding privacy, ensuring that the interior space accommodates activities, and designing common areas such as swimming pools within the property. Sales personnel must build strong brand trust with customers to make luxury home projects a rare item in terms of design, offering ample usable space, value, and reflecting the true urban lifestyle of the residents or homeowners clearly.<\/strong><\/span><\/p>