The research found that many developers were launching condominium projects with asking prices of over Bt300,000 per square metre and the new norm seems to be Bt250,000 per square metre.

However, there will be winners and losers in the market, depending on product positioning and pricing.

With a log of options in this segment for buyers to choose from, CBRE is seeing slow sales in many projects. Unsold units in completed projects are being offered at discounted prices to clear the inventory.

“We believe that the winners in [the competition] to sell their luxury condominium projects will not be those projects with the best room layouts or design, but whose that can sell the right lifestyle at the right price,” according to the report.

According to CBRE’s fifth annual Global Living Report, Bangkok is ranked at 33rd out of 35 global survey of the world’s most expensive residential cities, with Hong Kong maintaining its position as the world’s most expensive.

The report profiles the property markets across those 35 key global cities. The results forefront investments in urban areas such as transport infrastructure, connectivity, retail, cultural centres and housing as the key drivers of economic growth.

Jennet Siebrits, head of residential research at CBRE UK, noted the latest report expanded from the previous 29 cities. They include some of the most exciting cities in the world, from emerging technology-driven powerhouses like Shenzhen and Bangkok through more traditional capital cities such as Rome and Lisbon, to rapidly evolving modern urban centres like Dubai and Johannesburg.

“The world’s greatest cities continue to transform to encourage innovation, increase their working and living populations and create new commercial opportunities for businesses,” she said.

The top three most expensive places to buy a residential property are once again in Asia. Hong Kong remains the city with the highest-value residential real estate, with an average property costing Bt39.52 million (US$1.235 million). Singapore remains in second place, averaging Bt27.97 million ($874,372) and Shanghai is third at Bt27.92 million ($872,555). As observed in last year’s report, all these cities have introduced cooling measures to keep prices under control.

Bangkok stands at the 33rd position with an average residential property price at Bt3.4 million ($106,383), followed by Ho Chi Min City at Bt3.29 million ($103,057) and Istanbul at the bottom at Bt3.11 million ($97,396).

The biggest year-on-year growth was experienced in double-digits by Barcelona (16.9 per cent), Dublin (11.6 per cent), Shanghai (11.2 per cent) and Madrid (10.2 per cent). London remains one of the top 10 performing global cities, with the average property price at Bt20.7 million ($646,973) although growth is low at 1.1 per cent.

“House prices increased year on year across 30 out of the 35 cities we looked at, although generally at lower rates than previously,” Siebrits said. “In general, CBRE is seeing house price growth slow across our cities as we move towards the end of a long property cycle. We would expect increasing interest rates to be affecting cities in the US, and various cooling measures affecting the Asia Pacific region, although Shanghai still saw robust growth.”

“We’re collaborating with five global designers for the interior design of our luxury residential collection to inspire our customers to decorate their residential units,” Sansiri Plc’s chief creative officer, Ou Bholyodhin, said in a recent interview with The Nation.

Sansiri Plc has introduced its luxury collection in four residential projects – 98 Wireless, Baan Sansiri Pattanakarn, the Monument Thong Lo, and Khun by Yoo inspired by Starck.

The five global designers who contributed their interior designs to the projects are:

Gert Voorjans, a multi-talented Belgian decorator famous for his distinctive eclectic style, as seen in the window display for high-end fashion label Dries Van Noten’s flagship store, who is responsible for a special unit in Monument Thong Lo;

Lorenzo Castillo, a Spanish designer who achieves a balance between the classic style and contemporary style through his daring designs, and also has worked for Spanish luxury fashion label Loewe on its window decoration for stores in Spain, Shanghai and Hong Kong. Castillo will decorate special units and the penthouse at the Monument Thong Lo.

Hutton Wilkinson, an American interior designer who also boasts a flair for home decoration and jewellery design, who will decorate special units and the penthouse at Monument Thong Lo;

Mary Fox Linton, a famous British designer, who stands out for her modern contemporary style and yet keeps British beauty close to her heart, who will decorate the show unit of Baan Sansiri Pattanakarn; and Phillippe Starck, the famous French designer and product designer who became a household name with his interior, industrial, architectural and product designs, and has also worked with YOO Design Studio to design the KHUN by YOO inspired by Starck. It was the first and only residential project Starck had ever collaborated on in Thailand, and will be ready to welcome its residents by the last quarter of this year.

“We believe that the luxury residential projects must move from a focus on function, which is now the normal standard for all of residential projects to achieve and be concerned about, and instead present a fashion statement that reflects their owners, just like other fashion-brand products in the market,” Sansiri Plc president Srettha Thavisin told The Nation.

“The value of a luxury residence is not only focused on its location and facilities, but also on the value of the brand itself and the unique design,” he said.

“This is the meaning of Sansiri.”

The developer now has a luxury collection in its portfolio worth Bt22 billion in total, as the company has stepped up as a global luxury brand and reinstated its leadership in the Thai real estate market. The company has targeted total sales of the Sansiri Luxury Collection portfolio reaching Bt4.5 billion by 2019 end.

Ou added that the company leverages its deep and thorough understanding of the behaviour and lifestyle needs of its customers in the luxury segment. They are increasingly opting for a worthy investment of their passion in property whose value endlessly increases through time as the brand differentiation is developed and sets the buildings apart from the competition.

“Our core marketing approach is emotional story-selling. Similar to the way global luxury fashion brands create riveting stories on exceptional material selection, the process of their creation and historical heritage, we focus on creating emotional connections to customers, as well as a unique experience from the moment a customer enters our sales gallery. We also emphasise the taste and preference of each individual customer in order to customise the sales approach and create an impressive experience,” he said.

Meanwhile, other property developers are also moving to use global architects and designers to design their residential projects.

For example, AP (Thailand) Plc, in 2015, opened its condominium units with interiors created by globally renowned Japanese designer Naoto Fukasawa, who has designed products for B&B Italia, Maruni and Issey Miyake. AP’s approach was intended to inspire its customers to design their residential unit under the fashion designer’s theme.

Ananda Development Plc also has selected both local and global architects as its advisers while designing its condominium projects. For example, the Thai architectural firm A49 designed the Ashton Chula-Silom. The company also joined with the internationally renowned Bangkok-based firm, commonly known as dwp, to design its condominium projects.

When people buy a condominium worth more than Bt10 million, they need a design to match the location and see that is also socially the right fit for them, Ananda Development Plc’s CEO, Chanond Ruangkritya, said.

“Location is still at the heart of building condominiums and other residences, but design and function are what inspires people to speed up their buying decision,” he said.

According to Knight Frank’s “The Wealth Report”, due to the rarity and limited number of luxury and super-luxury real estate projects, the ultra-high-net-worth individuals around the world are planning to invest more in luxury real estate. Total investment value in private real estate reached US$289,000 million in 2018.

In Thailand, Plus Property has revealed that the value of the luxury real estate market has seen an average growth of 7 per cent annually during 2012-2018. The luxury condominium segment alone had an average response rate of 70 per cent in that period. Up to 31 per cent of all luxury projects in the market were sold out within one year, while only 20 per cent of 417 real estate projects across all segments available in the market were sold out in less than one year.

Luxury real estate has also generated a high average yield of 7-10 per cent, while in projects located in the highly sought-after inner Sukhumvit and Thong Lor areas the yield can be as high as 9.5 per cent.