Luxury single detached houses continued to be the best-selling segment in Greater Bangkok this year, despite a significant amount of new supply launched over the past two years, which reached a peak in 2023.

Sumitra Wongpakdee, managing director of property research and consultancy Terra Media and Consulting, said high-priced single detached houses continued to perform well, in contrast with lower-priced segments, which experienced a decline in both new launches and sales.

"Demand in the high-priced segment comes from both end users and investors purchasing properties to rent out," she said. "In some prime locations, a unit priced at 15 million baht can generate rental income of 100,000 baht per month, which is considered a strong return."

According to the company's market research, luxury single detached houses or units priced at 30 million baht and above recorded an average annual growth in the monthly absorption rate of 30% between 2021 and 2024, the largest in the single detached house market.

This segment experienced a peak in new supply launches last year, with around 1,500 units, following 1,000 units in 2022. This is a significant increase compared to the typical yearly supply of around 100-300 units.

In the first nine months of 2024, around 1,000 new units were launched in this segment, with an average monthly absorption rate of 0.9 units per project, compared to 2023, which had an absorption rate of one unit per project per month.

The second best-selling segment since the pandemic has been units priced between 10-30 million baht, recording an average annual growth in the monthly absorption rate of 21% from 2021 to 2024.

In the first nine months of 2024, roughly 5,100 new units were launched in this segment, with an average monthly absorption rate of 2.4 units per project.

This marked an increase from 4,900 units launched in 2023, which had an absorption rate of 2.5 units per project per month.

The 5,100 units launched in the first nine months of 2024 set a new record, surpassing the 4,900 units launched in the whole of 2023 after 3,100 units were launched in 2022.

The 2022 figure rose from 1,800 units in 2021, reflecting an average annual growth of 45% in new supply between 2021 and 2024.

In the lower-end segments, single detached houses have continued to experience declines in both new supply and monthly absorption rates in the first nine months of 2024, primarily due to the economic slowdown.

The weakest performer was single detached houses priced at 5 million baht or less. New supply saw consecutive declines from 8,500 units in 2022 to 6,500 in 2023, and to just 3,700 units in the first nine months of 2024.

The monthly absorption rate dropped to 2.6 units per project, down from 3.4 in 2023, which had increased from 3.1 in 2022 and 2.9 in 2021. The monthly absorption rate of 2.9 units per project recorded in 2021 represented a fall from 3.4 units per project recorded in 2020.

The mass segment, with units priced between 5-10 million baht, also experienced a slowdown. New supply in the first nine months of 2024 tallied around 8,300 units, compared with 13,200 units in 2023, which was a record high after 9,300 units were recorded in 2022.