Clients often ask us whether developers will increase their prices as time passes. The answer in most cases is yes. If you made a purchase during launch, the price which you paid for that development is typically lower than what you would pay if you bought into the development after a few years.

 

An example of this:

 

Let us take a look at a very popular project in the Rama 9 area. This project is Nue District R9. It is located next to Jodd Fairs, behind Grand Central Rama 9. This area is often heralded as the second central business district with the Sathorn Financial District being the first. Companies like Unilever and Huawei are in this area. So are the Stock Exchange of Thailand and the Chinese Embassy.

 

Back in 2022, the per square meter of a unit in Nue District R9 was about THB 130,000 to just above THB 140,000 per square meter.

 

 

Fast forward to July 2024.

 

This is the current pricing for the last eight units in the development. The per square meter pricing, before discount, has gone up to about THB 200,000 per square meter. After the discount, the per square meter pricing is averaging at just under THB 200,000 per square meter.

 

 

The increase in pricing is more than 30% from the launch.

 

We make this comparison because we sold units in Nue District R9 in 2022 and today in 2024, a client wants to purchase a unit in the same development.

 

To summarise, buying a development during launch is advantageous for two main reasons.

 

1. Prices are cheaper during launch.
2. You have more choices when choosing a unit.

 

To ensure this, may we suggest a few pointers.

 

1. Always buy from a reputable developer.
   A large local Thai developer that is listed on the Stock Exchange of Thailand. Such developers have holding power and have reputations to maintain. They will not slash prices and will gradually sell units at higher prices over time. There is no time limit for Thai developers to sell out their stock. Nue District R9 is by Noble Development. Noble Development was the developer behind Noble Ploenchit. Noble Ploenchit was completed in 2016. The development was sold out only this year. The developer took their time selling their unsold stock.
2. Buy a development in a prime location.
   The reason why Nue District R9’s pricing increased is because it is located in the Rama 9 financial district. It is within walking distance of Phra Ram 9 MRT Station. There are development plans in the area moving forward. The land that Jodd Fairs is sitting on will eventually become a mixed development with offices and hotels. Yes, we agree that there is a lot of vacant land in Thailand. However, land is extremely limited in the core regions of Bangkok like Siam, Ratchathewi, Ploenchit, Rama 9, Sathorn, Silom, Thong Lor and Ekkamai.

 

 

There is a new development in the Rama 9 area called Nue Epic Asok-Rama 9. Prices start from about THB125,000 per square meter. This is significantly lower than the current price of Nue District R9.

 

Here is a review of Nue Epic Asok-Rama 9: https://daryllum.com/my-review-of-nue-epic-asok-rama-9/

 

 

Yours sincerely,

The editorial team at Invest Bangkok Property