CBRE Elite Living 2015 Showcases 13 Luxury Residential Projects on 22 – 31 May 2015 at Siam Paragon
CBRE will be holding its annual “CBRE Elite Living” exhibition at the Fashion Hall (1st Floor), Siam Paragon from Friday, 22nd to Sunday, 31st May 2015. This is the 4th year CBRE has organised the event which showcases the finest property selection with the best promotions and offers buyers a “one-stop shopping” under a single event.
This year, CBRE has handpicked 13 projects in the best locations to showcase at the exhibition, ranging from prime housing and condominium projects in Bangkok to luxury resort homes in Phuket, Pattaya and Hua-Hin, worth a combined value of over THB 15 billion. Five new projects will be unveiled for the first time at the event including Klass Sarasin-Rajdamri, Klass Siam, Quarter 39, Tela Thonglor and Baba Beach Club Phuket by Sri panwa.
The Market Outlook:
Whilst 2015 is viewed as a challenging year for condominium sales across all grades underpinned by a weak local economic growth which results in an overall investment sentiment, CBRE has experienced a promising start to the year with several successful launches of luxury and super luxury projects. In the first quarter, CBRE represents landmark projects including Parc Priva, Nimit Langsuan, The Diplomat 39 and Four Seasons Private Residences, all of which have been well received by the top-end market.
“With an active top-end market in the first quarter and a positive momentum, we believe the CBRE Elite Living exhibition is well timed and will allow us to further penetrate the luxury market and bring to potential buyers and investors new products in prime locations which are launching or have recently launched in this segment,” said Ms. Aliwassa Pathnadabutr, Managing Director, CBRE Thailand.
Due to rising downtown land and selling prices, developers now must ensure their product is differentiated and has the ability to draw interest from moneyed top-end buyers. As a result, we now see new projects which are better not only in terms of concept, design and aesthetics but also in terms of layouts, functionality, finishing and specifications.
Renewed Demand from Foreign Investors:
The superiority and variety of the projects on offer in the luxury market with affordable prices by international standards, particularly in Bangkok, now puts Thailand on the investment map for many foreign investors in the region. In addition, the current stable political climate has been a key factor in drawing back foreigners who are considering buying in Bangkok for investment purposes. CBRE has received more enquiries from individual buyers, foreign developers looking to develop in Thailand as well as fund investors.
Based on CBRE’s sales transaction and website enquiries records, we have seen an increase in demand from foreign buyers in 2015. We believe this is driven by a combination of a stable local political outlook, the downturn in key regional markets, as well as the weakening of the Thai Baht. With the Baht at its’ six year low, foreign investors can take advantage of this opportunity to buy Thai properties at a cheaper price in their local currencies. "In addition, historical statistics show that the top-end market for prime downtown locations in Bangkok has been very stable. Based on past performance, the market has proved to be very resilient with minimal downward pressure on price from 1997 through to the 2008 crisis," commented Ms. Aliwassa.
Thailand remains a prime business hub for Southeast Asia with its prominent location and connectivity to other ASEAN countries and China. With this strategic advantage combined with prices which are substantially undervalued compared to key regional cities, foreigners are keen to invest in prime downtown Bangkok as they see opportunities for further capital appreciation. This is evidenced by the number of units sold by CBRE to foreigners which has risen from 18% in Q4 2014 to 22% in Q1 2015. Foreign enquiries generated via the CBRE Thailand website also rose by 4% during the same period.
CBRE has successfully launched three luxury projects in Hong Kong recently, including Magnolias Waterfront @ Icon Siam in late 2014, Magnolias Ratchadamri Boulevard in February 2015 and Four Seasons Private Residences in May 2015. CBRE achieved a total sales of 52 units with a combined value of over THB 1.6 billion. “This is a record-breaking sales performance for CBRE overseas exhibitions of Thai properties in Hong Kong. To further tap into potential foreign demand, CBRE is currently exploring other markets such as India, Taiwan and the Middle East to exhibit Thai properties overseas,” said Ms. Aliwassa.
In addition to the growing foreign demand which is driving the top-end market, demand from high net-worth Thais across all age groups including singles and joint-families continue to increase for condominiums and houses in prime downtown locations both for own-use and as an investment.
Prices:
In 2015, prices of downtown condominiums in Bangkok have increased across the board at varying degrees, depending on the property grade, condition and location. Average prices of condominium high end above has increased by12% per annum. The luxury and super luxury segment have increased at the highest rate, with prices of new launch projects increasing 20% from 2014. Re-sale prices of luxury properties in prime downtown locations have also increased in line at an average of 7-12% per annum during the last two years whereas prices of older condominium buildings mostly built during 1990’s have increased at a slower rate approximately 3-5% per annum.
Best Promotions & Offers at CBRE Elite Living:
CBRE Elite Living offers the opportunity for buyers and investors to compare the best the market has to offer in one event. The exhibition is also supported by extensive project promotions from 0% installment schemes on the contract signing fee for Krungsri credit cards, hot deal units, holiday packages, and gift vouchers to luxury furniture packages. In conjunction with CBRE’s official partners – Jaspal Home, Ethan Allen, Chateau Meyre, Veranda and Siemens, CBRE is also offering top-on promotions, privileges, lucky draws and exclusive events and activities to be held over the two weekends of the exhibition.
With the finest property selection, the best promotions and prices, CBRE expects to achieve a sales target of THB 2.5 billion over the 10-day exhibition from 13 projects.
