With over 16,000 units slated for launch in 2007, Bangkok's upper end to luxury condominium pricing is still reaching skywards. Can this be sustained in view of the current economic slowdown and political uncertainty, one have to ask? Average pricing for prime condominiums in the City of Angels is still fetching around Baht85,000 per square metre but the momentum of further increases seem to have slowed. Recently yours truly came across an advertisement in Bangkokpost made by TCC Capital Land in the effort of marketing its Empire Place on Bangkok's Sathorn Road for a whopping Baht14 million including a Baht 3 million worth of American imported furniture. With a total floor area of 65 square metres but usable space of 58 square metres this work out to be Baht215,384 per square metre! If this advertisement is correct it is about 2.5 times the average price of a high end condominium unit in Bangkok's Central Business District (CBD). Now one may ask what is the expected rental at these pricing levels? At 6% expected return of a high end condominium in Bangkok this will work out to be Baht70,000 in rental income per month. Is this rental rate achievable? Seems very high in comparison to the larger units that are currently available in Bangkok. One thing for sure, the Bangkok condominium market has matured especially with the increasing inputs from overseas investors and their cash of recent years. On condo prices reaching for the sky in this amazing city, watch out for more postings in the future.
