Nexus Reveals Location and Taste are Key Reasons for Luxury Home Purchase, Driving Growth of Luxury Residence Market

Real Estate Press Releases Tuesday March 6, 2018 14:00
Bangkok--6 Mar--Agate Communications

Large-sized home with broad backyard may not be an only one choice for luxury home buyers as there are location and land cost to factor in. Suitable size of land and its limited availability in prime location are another significant factors which influence on project development, now shifting to emphasize more on behavior and lifestyle of residents, for a house which is not only a beginning but also a reflection of an identity and a part of lifestyle.

Potential Locations for Super-Luxury House

Mrs. Nalinrat Chareonsuphong, Managing Director of Nexus Property Marketing Company Limited, says about luxury residence market in inner city which continues growing that Bangkok luxury residence is one of the hottest markets during the past few years. From 2015 to the first quarter of 2018, a number of supply in this market launched by large and individual developers totals 42 projects with 1,554 units which reflects a consecutive demand in luxury residence market. They are in 7 key potential locations, ranked by number: (1) Sukhumvit (Phrom Phong—Ekamai), (2) Lad Prao—Kaset Nawamin, (3) Rama 9—Srinakarin—Pattanakarn, (4) Ratchapruek, (5) Sathorn—Rama 3, (6) Bang Na, and (7) Rama 2. As seen, luxury residential projects are located in the city's prosperity areas which have different features, affecting on different home designs and features.

However, location remains the key factor for luxury residential development. With a limited number of available land and soaring land prices every year, developers are more interested in project development on smaller-sized land, yet offering a unit with function area that completely meets requirements of luxury home buyers. As land plot per unit is sized between 29—129 square wah, vertical house will be more developed in the market. Its definition is a house with a height of higher than 15 metre or four storeys and more. From 2015 to the first quarter of 2018, a number of vertical house totals 12 projects and 94 units. During 2015–2016, this kind of house is located in Sukhumvit area (Phrom Phong—Ekamai) and from 2017 to the first quarter of 2018, it expands from Sukhumvit to Lad Prao - Kaset Nawamin, Bang Na and Rama 9—Pattanakarn—Srinakarin.

Home Design

There are 2 designs of luxury residence: (1) horizontal luxury house and (2) vertical luxury house. These 2 designs have their own outstanding features including exterior, land size and project location. However, size of their usable area remains similar while location (land price) is one of the key factors for design development.

Additionally, layout of function area that meets lifestyle and usable area that is sufficient for residents are an ideal home for those looking for a luxury house. They also need a house that can reflect and be in line with their own identity. These are pain points developers should analyze in order to develop a right product with outstanding features for target customers.

Home Functions Reflecting Resident's Lifestyle

Luxury residence market is attractive for both property developers and residents due to a limited land availability as aforementioned. In the first quarter of 2018, there are 4 newly launched projects. Locations are mainly in Sukhumvit area (Phrom Phong—Ekamai), Sathorn—inner city and Lad Prao—Kaset Nawamin area during the past year. These are lifestyle locations which reflect an identity and lifestyle of those choosing to live there.

Developer's experiences in luxury residential development have shaped development of home designs and functions which add value and attractiveness to project, for example, wine cellar room, supercar lounge, breakfast corner and larger usable spaces that are in line with lifestyle of residents to fulfil their living in their own private residence.

Additionally, that house should maximize potential in order that it will not need to be complied with regulations of high-rise building development which will limit design. According to a market data, a land plot for a unit is sized from 29 square wah with a usable area starting from 450 square meter and 4-7 storeys each which creates a vertical house. This is a new development of a current house with a different design from the past.

From the above information, a vertical house developed on a land plot in inner city stimulates developers to try to develop project that meets requirements on value for money spent for a land at high prices with the highest potential. This will create a house on a smaller-sized land plot yet offered with sufficient usable space for requirements and lifestyle of customers in luxury segment.

Latest Press Release

Photo Release: Knight Frank Thailand Hosts a Pre-Sales Event for Niche Pride Taopoon-Interchange, the First with 30 Floors of Common Spaces, Experiences High Level of Bookings, Reflecting Appeal of Purple Line Mass Transit System

The pre-sales event for the project has ended. It generated considerable attention in the market, capturing sales of over 50% of the project. Under the marketing and sales capacity of Knight Frank Thailand. This speaks to the quality of the condominium...

#Sansiri# kicks off 2018 overseas market business plan

Announces first-ever Sansiri Global Agent Summit 2018, affirming positive outlook on Thailand's real estate sector by extending strong partnerships with international agents Sansiri Public Company Limited, Thailand's leading full service real estate...

Papus Property, new blood real estate developer. Makes Debut with the First Project, Shizen Phattanakarn 32, Japanese-Style Townhome to Tap Gen C, Aiming Sales of 80% By Year-End

Papus Property, new blood real estate developer, catches a trend of living in balance with nature, launching "Shizen Phattanakarn 32," a modern loft style townhome project under a concept of "WELLBEING HOME," a living innovation from Japan. The project...

#Pattana Professional No.1 of #Apartment Design Service Ready to meet every entrepreneur in Architect Expo 2018 Booth D413 Row P cross Row 9 Challenger Hall 1 Muang Thong Thani

In Architect Expo 2018 in between 1st -6th May 2018, if some entrepreneurs want to come to meet professional architect in the fresh but can't see the architect. You can meet the professional architect to see the past project and discuss in Booth D413 Row...

Sansiri releases Home Service 2018, all-in-one-app that completes everyday living experience with first-of-its-kind Thai-language voice command,

Sansiri releases Home Service 2018, all-in-one-app that completes everyday living experience with first-of-its-kind Thai-language voice command, E-Wallet and enticing promos for digital savvy consumers from leading partners, targeting to reach 50,000...

Related Topics