German automaker Porsche is partnering local developers to build condos costing up to $40 million per unit in Bangkok as it expands to luxury property development in Asia.
Its Porsche Design unit is collaborating with Anada Development in a 21-floor apartment block which will offer 22 units priced between $15 million and $40 million, according to Bloomberg.
The building, to be completed by 2028, will be Porsche Design’s first in Asia. It has previously developed properties in the U.S. and Germany.
Porsche’s building is among several projects in the luxury segment which is being developed in Thailand’s bustling capital where prices are considered to be more competitive then regional rivals.
“Bangkok distinguishes itself by providing an affordable luxury experience that many global cities cannot rival,” said Leung.
“In addition, Bangkok presents straightforward property ownership laws, a robust rental market and a healthy secondary resale market.”
Hong Kong has seen property values plunging by 30% in the last three years, while in Singapore foreigners have to taxes up to 60% on purchases.
A large portion of Thailand’s luxury property market is being snapped up by foreigners.
Foreigners bought 33% of the luxury condominium units sold by CBRE Thailand in the first half this year, up from the 25% recorded in the same period last year, the property consultancy has said.
Wealthy expats contributed to the growth in sales of luxury condos, unlike the broader property market, where most sectors have seen a decline in sales as banks declined a large number of housing loans, said Artitaya Kasemlawan, CBRE’s head of residential sales.
“Sales of super luxury condo units stood at 86% in the first half of this year, while those in the branded residence segment (condominiums managed by 5-star hotel groups) enjoyed 90% sales,” she said.
Super luxury condo units are those priced from BHT350,000 (US$10,300) per square meter or more.
Limited supply explains the surge in sales as there were only three new luxury condo projects launched in Bangkok in the first nine months of this year, she added.
