_Market Overview for Houses Priced at 10 million Baht and Up at Year-End 2021

The market for low-rise houses with prices of 10 million baht or more continued to show positive signs in 2021. Throughout the year, developers have increasingly turned their attention to more of these projects, but the overall supply in this segment remains relatively low. As for demand, there was still steady growth from customers with high purchasing power. Such buyers are considered important in this market segment as they can generate income for developers who have ventured into the development of low-rise housing projects. Although the needs of this group are quite limited, lifestyles and living behaviours in the New Normal era, due to the Covid outbreak, are changing. There is now a need for more space with features that support daily usage. There is also the need for and development of technology that is applied to the house and the desire for the project location to be in a convenient travel zone. Such factors may help expand demand in this market segment in the future.

Land Allotment Permits

From 2017 to 2021, the number of land allotment permits granted for houses in the price range of 10 million baht or more (for projects) was 10,087 units. In 2021 alone, it was found that 1,785 units were granted permits in this housing category.

Land Allotment Permits for Houses Priced from 10 million Baht and Up, 2017 to Year-End 2021

Demand

Demand is measured from housing projects that still have units remaining for sale. At the end of 2021, there were approximately 197 units priced at 10 million baht or more left for sale. The cumulative supply included 20,434 units with 14,766 units sold, representing a sales rate of 72 percent. The sales rate at the end of 2021 was 11 percent compared to the 61 percent sales rate of the previous year.

During 2021, there were a total of 3,100 new units sold, which is a relatively high figure compared to last year. Throughout 2021, it could be seen that the market segment of homes priced at 10 million or more is likely to continue growing well. This marks a great opportunity for developers of this type of project.

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