Risinee Sarikaputra, director of research and consultancy at Knight Frank, says the property market started its decline in April last year as presales were affected by more stringent loan-to-value (LTV) rules, the global trade war and the appreciation of the baht. “Condo sales dropped sharply from the slowdown in demand from both domestic and foreign buyers,” she said.

Although the Covid-19 pandemic may not directly affect the industry, Sarikaputra points out that it is causing severe damage to the overall Thai economy, which is “already fragile and heavily reliant on tourism and exports”.

With Chinese and Hong Kong buyers typically accounting for as much as 49 per cent of units in new projects, their exodus this year due to travel restrictions has exacerbated the situation.

Yet every down cycle presents opportunity, and Tim Skevington, managing director at Richmont’s, the Bangkok affiliate of Christie’s International Real Estate, says buyers who have committed to deals during the pandemic have benefited from the high discounts and promotions offered in many projects.

“Initially, all sectors of the market were certainly affected by Covid-19 as people held back and waited to see what would happen,” he said. “The response by developers here was aggressive as they used the situation as an opportunity to get rid of excess stock.”

During March and April, Skevington continued, the mid-to lower-end boomed in response to the “fantastic discounts” available. The luxury segment also benefited, he added. “Not in terms of such sharp discounts, but there was a big uptick in demand for high-end real estate in Bangkok, particularly among foreigners who I think saw an opportunity in a country that was generally less affected by Covid-19 than many others,” he said. During this time, most inquiries for luxury property came from within Asia, followed by interest from the United States and Europe.

“We’ve completed some very interesting sales of expensive condos – for example at The Ritz-Carlton Residences, Bangkok – through video presentations and 3D walk-throughs, using new technologies,” Skevington said. “So it’s not been as bad as perhaps a lot of people expected.”

Although many developers have furloughed plans to launch or start new projects for the time being, Skevington says units in a number of newly finished projects, which were sold off-plan two or three years ago, are back on the market again and offer “very good value”. Some of these would be unsold inventory, but a large percentage are a result of Chinese buyers pulling out of deals because they can’t get money out of China.

“These ready-to-move-into projects are actually offering very good value as developers are frequently selling at pre-launch prices in order to move their stock,” Skevington said. Among these, Hyde Heritage Thonglor, in Sukhumvit/Thonglor, Bangkok’s most popular residential district, is generating a lot of interest among Hong Kong buyers. The project, a joint venture between two of Thailand’s largest listed residential developers, Grand Asset and Property Perfect, and Japan’s Sumitomo Forestry Company, is due to complete at the end of 2022 and recently launched off-plan prices have been adjusted in line with the current market, he said.

Foreign buyers are also taking advantage of final promotions on the last remaining homes at The Ritz-Carlton Residences, Bangkok, the only centrally located freehold branded condo in Bangkok, he added.

Ahead of its September 10 launch, the developers of Aman Nai Lert Residences Bangkok say the project has been met “with an exceptional level of enthusiasm”. The luxury branded residences and hotel at Aman Nai Lert Bangkok, set within the century-old tropical gardens of Nai Lert Park, are slated for completion in 2023.

Naphaporn “Lek” Bodiratnangkura, CEO of Nai Lert Park Development, said the residences will be located on floors 11 to 28, providing a lofty sanctuary amid the lush oasis of the park. “With uninterrupted views of Nai Lert Park and the Bangkok skyline, the residences will be limited to no more than 50 units split across 18 floors. The one-, two-, and three-bedroom units and penthouses have a private entrance, offer an abundance of space, and most feature private terraces,” she said. The starting price is 540,000 baht (US$17,300) per square metre with the smallest unit at 100 square metres (1,076 sq ft).

Aside from luxury condos, Aliwassa Pathnadabutr, managing director of CBRE Thailand, finds that the luxury housing market has been one of the fastest segments to recover as Thailand’s lockdown restrictions ease.

“The main buyers are locals seeking a new home with more living space and privacy following the ‘new normal’ after Covid-19,” she said. “Features they are looking for include more space, a dedicated working area, bigger kitchen, storage, car parking, a pet area and greenery.”

CBRE is currently the sole agent for nine luxury single housing projects in the central Bangkok, midtown area and suburbs, at prices ranging from 25.9 million baht to 150 million baht (US$829,000-US$4.8 million). Since its June 1 launch, The Marq Exquisite, located 20km from the city centre, has sold 20 out of 24 houses priced at 30-35 million baht for five bedrooms in 6,500 sq ft of usable space. “Our sales of other ongoing luxury housing projects have also achieved better rates than the pre-Covid-19 period because the developers are offering more discounts,” Pathnadabutr said.

Condominium projects near educational institutions are also recovering quickly.

“Condominium projects near universities have a clear target audience because there are real demands,” Pathnadabutr explained. “Apart from own-use purchases or parents purchasing for their university-bound children, this market is a good alternative for investors looking for a low-risk market which is easy to lease. In comparison to other condominium markets, when it comes to resale, condos near universities are more liquid, especially projects with modern designs that suit the next generation.”

Buying guide

What you can buy for US$342,565 and up: a one-bedroom, 430 sq ft home at Hyde Heritage Thonglor, Bangkok. Designed as a legacy investment, the project comprises a single, New York-inspired tower with 45 floors and 311 freehold condominium units on just under one acre of land. Slated for completion in Q4 2022, its features include a glasshouse and garden, a grand residents’ lounge, co-working space, library, tea lounge, children’s playroom, theatre room and a spa and salon. Two-bedroom units start at US$612,966.

What you can buy for US$955,000-US$1.1 million: a five-bedroom house in The Marq Exquisite, located on Phran Nok-Phutthamonthon Sai 4 Road. Each residence has at least a 4,300 sq ft plot with a living space of 6,500 sq ft, with facilities including a clubhouse, fitness room, chef’s kitchen, co-private working space and saltwater swimming pool.

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