Savarin Luxury Property
Oct 24, 2024
The Porsche Design Tower Bangkok establishes a new standard for branded residences in Thailand, with prices surpassing THB 1 million per square meter.
Thailand’s real estate developers are diversifying beyond traditional hotel partnerships, exploring collaborations with iconic automotive, fashion, and wellness brands to appeal to luxury property buyers. Ananda, a major property group, recently garnered international attention with its ultra-luxury Porsche Design Tower Bangkok, where prices soar to USD 33,000 per square meter (THB 1 million per square meter). Individual units are priced between USD 15 million and USD 40 million (THB 49 million to THB 1.3 billion), setting a new market high. The Porsche Design Tower Bangkok, a soon-to-be landmark skyscraper, will add a unique presence to the city’s skyline.
Thailand currently leads Asia in branded real estate, with THB 106 billion worth of properties available or under development, as reported in the "Thailand Branded Residences Market Review 2024" by hospitality consultancy C9 Hotelworks.
The Influence of Luxury Brands
According to Ananda’s CEO, Chanond Ruangkritya, Thai consumers recognize how high-profile brands can justify premium pricing. By partnering with Porsche, Ananda aims to captivate high-net-worth buyers and stand out in a competitive market. For the company, this collaboration is about achieving premium pricing and distinctive brand appeal.
The Aman Nai Lert Bangkok set a new bar for ultra-luxury residences, effectively doubling the median market price and drawing in numerous international buyers. Thailand’s branded residences sector has seen remarkable growth since then.
Increasing Share of Luxury Segment in the Pipeline
The country now has 46 branded real estate projects, totaling 10,081 units, with 67% located in resort destinations and the remaining 33% in Bangkok. Bangkok’s median price per square meter is THB 279,600, higher than in resort areas, reflecting the premium on urban land.
With land costs surging in prime areas like Bangkok and Phuket, developers and brands are increasingly considering expansion into secondary and tertiary locations, such as Khao Yai and Rayong, where opportunities are more affordable. Key projects include Kempinski Residences Khao Yai and Amatara Residences Rayong.
Under Thailand branded residences market, The luxury segment leads with 21 projects, accounting for 46% of the projects, followed by the upper-upscale segment with 12 projects, representing 26% of the projects. The remaining 28% is distributed among other segments.
Top 10 Branded Residences are developed under leading hotel groups. Wyndham Hotels & Resorts accounts for 3,977 units from 12 properties, representing 35% of the units in the market.
Shifting Strategies for Overseas Buyers
As the branded real estate market evolves, developers are seeking brand and product combinations that will draw interest, especially in Bangkok. Given tightening credit conditions, a sluggish economy, and an oversupply of completed units from large real estate firms, developers are increasingly focusing on attracting foreign buyers.
Source: C9 Thailand Branded Residences Market Review, September 2024