Bangkok Developer Launches Six Luxury Projects, Defying Market Slowdown
Bangkok—Despite a cooling Thai property market and tighter lending practices, Charn Issara Development is doubling down on the luxury segment, unveiling ambitious plans for six new projects valued at a staggering 16 billion baht. This bold move reflects the developer’s belief in continued robust demand in the high-end market, even as the middle and lower tiers face economic headwinds.
The company’s bullish outlook is fueled by the resounding success of its Issara Residence Rama 9 project. Last year, single-detached houses priced between 100 and 125 million baht sold out completely, attracting both domestic buyers and international investors from Japan and Myanmar. This success highlights the enduring appeal of luxury properties, particularly among affluent buyers less susceptible to economic fluctuations.
According to Teeraporn Srijaroenwong, managing director of the SET-listed developer, while the overall economy faces challenges and household debt remains high, the luxury sector remains distinct. “Amid the economic slowdown and high household debt, financial institutions have tightened mortgage approvals,” she explained. This tightening, however, appears to impact the lower end of the market more significantly. Ms. Srijaroenwong noted that some customers were denied mortgages not due to poor credit history, but because banks perceived their employers as unstable in the current economic climate. This highlights the nuanced impact of the economic downturn on different property market segments. Indeed, stricter lending practices led to increased mortgage rejection rates for Charn Issara last year, particularly affecting a completed project with more accessible price points starting at 1.9 million baht.
This experience has shaped the company’s 2025 strategy, with five of the six planned projects targeting the luxury segment. These developments will offer units ranging from 20 to 250 million baht, catering to the upper echelon of the market. The remaining project, a condominium development in Hua Hin, will offer more moderately priced units, starting at 3.9 million baht and reaching 27 million baht. Within Bangkok, the focus remains on luxury single-detached houses, priced from 25 to 140 million baht. These projects will be located in the highly sought-after Rama IX-Krungthep Kreetha area, capitalizing on the complete sell-out of their previous project on Rama IX Road. “Demand in this segment is robust, from both local and international buyers,” Ms. Srijaroenwong affirmed. This is exemplified by recent sales to buyers from Japan, China, and Myanmar, primarily business owners and investors purchasing through their companies. To further cater to this international clientele, Charn Issara is considering offering leasehold contracts this year.
Beyond Bangkok, the company is expanding into the vacation home markets of Phuket and Hua Hin, with two projects planned for each location. Phuket, a renowned international tourist destination, is expected to attract predominantly foreign buyers, while Hua Hin, popular with Thai nationals, will cater to the domestic market. A significant Phuket venture is the Sri Panwa Lagoon, an ambitious 8 billion baht mixed-use development spanning 62 rai in Cherng Talay. This joint venture with Natee Panicheewa, whose family has transitioned from insurance and finance to property development, will feature villas starting at 30 million baht, hotels, and a community mall.
Looking ahead, Charn Issara aims to surpass 3 billion baht in revenue this year, a significant increase from 2.9 billion in 2024 and 2.25 billion in 2023. While the company has unsold inventory that can contribute to revenue generation, Ms. Srijaroenwong acknowledges the competitive landscape. Strategic pricing, targeted campaigns, and enticing promotions will be crucial to driving sales and managing cash flow, a key concern for all developers in the current market. This strategic approach, combined with a focus on the resilient luxury segment, positions Charn Issara to navigate challenges and capitalize on opportunities within the evolving Thai property market.
