Luxury single detached houses have maintained their position as the top-performing segment in Greater Bangkok’s real estate market in 2024, despite an influx of new supply over the past two years, particularly a record surge in 2023.
Sumitra Wongpakdee, Managing Director of Terra Media and Consulting, attributed the continued success of high-end homes to strong demand from both end users and investors. Investors are particularly drawn to properties priced at 15 million baht or more, as they offer lucrative rental opportunities. “In prime locations, properties priced at 15 million baht can generate monthly rental incomes of 100,000 baht, offering a solid return on investment,” Wongpakdee explained.
According to Terra Media’s market analysis, luxury homes priced at 30 million baht or higher experienced an impressive 30% average annual growth in the monthly absorption rate from 2021 to 2024, marking the largest increase in the single-detached house market. Despite a notable rise in new supply—about 1,500 units launched in 2023—luxury homes continue to attract strong interest.
In 2024, 1,000 new units priced above 30 million baht entered the market in the first nine months, achieving an absorption rate of 0.9 units per project per month. While slightly lower than 2023’s rate of one unit per month, this figure still represents a steady demand for high-end properties.
The second-best-performing segment, homes priced between 10 and 30 million baht, also saw consistent growth. Between 2021 and 2024, this category recorded an average annual increase of 21% in absorption rates. In the first nine months of 2024, 5,100 new units were launched in this price range, setting a new record for the segment and surpassing the previous year’s total of 4,900 units.
The overall increase in new supply from 2022 to 2024 reflects a significant shift in market dynamics, with developers keen to cater to the affluent segment. New supply in the 10-30 million baht range grew by 45% annually, from 3,100 units in 2022 to 5,100 units in 2024.
However, the lower-end segments have not fared as well. In particular, single detached homes priced at 5 million baht or less have seen consecutive declines in both new supply and absorption rates. In 2024, only 3,700 units in this price range were launched, a sharp drop from 8,500 units in 2022. As a result, the monthly absorption rate for these homes fell to 2.6 units per project, down from 3.4 in 2023, highlighting the economic slowdown’s impact on lower-income housing.
The mass-market segment, which includes homes priced between 5-10 million baht, also experienced a slowdown. In the first nine months of 2024, 8,300 new units were launched, a significant decrease from 13,200 units in 2023, which had marked a record high.
As the real estate market continues to shift, luxury homes remain a stable and lucrative investment, while lower-priced properties struggle to maintain momentum amidst ongoing economic challenges.
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