by kevinyeo | May 21, 2018 | News
In 2010, Thailand relocated 29 administrative and judicial departments to the Chaeng Watthana Government Complex, and property prices in Chaeng Wattana have risen.
In the past few years, chaeng watthana road has witnessed the opening of Central Chaeng Wattana Mall, Index Living Mall, Big C, Tesco Lotus, and Makro Hypermarket. The resident population has been rising year by year; at the beginning of this year, the Thai government announced that it was connecting the government’s administrative center to the pink line in the territory of Minh Buri. Construction to commence this year. Wattana Road will welcome an unprecedented golden period of development.
Located in the north of Bangkok, Chaeng Watthana Road is 8 kilometers long and is adjacent to Don Muang Airport on the west. It is adjacent to the Chao Phraya River to the east with three expressways running through it. The government spent 20 billion baht in 2005 to build a 929,800 square meter administrative center here. Five years later, tens of thousands of civil servants who work here have driven the demand in the local housing market and created many business opportunities. Many shopping malls, hypermarkets, snack bars and massage shops have opened one after another to form a community with good living amenities.
Real estate analysts pointed out that Chaeng Watthana Road is close to the administrative center of the government and is also close to the Don Muang Airport and Impact venue center; Don Muang Airport has direct flights to major cities in China and is the gateway for many Chinese tourists to enter and leave the country.
“The surge in Chinese tourists in the past three years has resulted in a higher occupancy rate for hotels in the Chaeng Watthana area. The owners of the apartments that make the apartments into Air BNB rooms have benefited greatly.”
Real estate analysts believe that the MRT pink line, which starts at the Nonthaburi Civic Center and ends at Min Buri via Watthana Road, is about to start construction and is expected to stimulate housing prices and land prices along the route.
The center of MRT pink line is at Si Rat Station and Muang Thong Thani Station on Chaeng Watthana Road; Si Rat Station is next to Makro Shopping Mall. Within 2 km radius, there are Central Shopping Center, Index Living Mall, Tesco Lotus and Big C Shopping Mall. This is largely considered as the central area of Chaeng Watthana.
The Noble NUE Chaeng Wattana project was promoted by developer Noble last month. It was 0 meters away from the Si Rat MRT station and was next to the Makro shopping mall. The response from the Thai buyers was overwhelming.
“This shows that the Thai people are very confident in positive Wattana, and in the potential sharp rise in property prices after the opening of the MRT.”
Located at the upcoming Sirat MRT station, there are 2 shopping malls and 3 hypermarkets within a radius of 2 kilometers.
For more information on the launch of Noble NUE Cheang Wattana, visit the official developer sales website.
source: www.udnbkk.com
by kevinyeo | May 19, 2018 | News
Despite a large condominium supply, the Sukhumvit area remains attractive to buyers, capturing a sales rate of about 70% as of the first quarter of this year, property consultant CBRE Thailand says.
CBRE managing director Aliwassa Pathnadabutr said Sukhumvit has the largest condo supply in downtown Bangkok, with launches totalling 14,000 units as of the first quarter.
“The total condo supply sold in the Sukhumvit areas was high at 10,000 units, which accounted for 69.8%, despite a large amount of supply,” she said.
Other locations in downtown Bangkok saw under 6,000 units in new condo supply. The location with the second largest amount of condo supply following Sukhumvit was Silom-Sathon with around 5,700 units.
However, locations in outer Sukhumvit saw the highest sales rate of condos with 88.2% of a total supply of 3,600 units. It was followed by central Lumpini at 84.1%, Silom-Sathon with 82.7% and Pathumwan with 80.6%.
Two other areas, the riverside and Rama III, had a sales rate of 78.6% and 43%, respectively.
As of the fourth quarter last year, the average selling price of a luxury condo was 270,499 baht per square meter, a rise of 15% from the year before.
The Riverside had the highest average selling price at 330,000 baht per sqm, followed by central Lumpini with 288,000 baht, Sukhumvit with 262,000 baht and Silom-Sathon with 240,200 baht.
Ms. Aliwassa said the higher selling prices of condominiums followed rising land prices.
In 2017, the Lumpini and Ploenchit areas saw the highest annual jump in land prices with 55% from 2016, followed by Sukhumvit with a rise of 30% and Silom-Sathon with 14%.
Last year the Sukhumvit area achieved a record-high land price of 2.6 million baht per sq wah, up from 2 million baht in 2016, she said.
According to market research by CBRE, there were a total of 950 condominium units launched in downtown areas in the first quarter of this year. CBRE expected it would total around 8,000 units by the end of the year, down from 12,544 units in 2017.
Of the first-quarter amount, 762 were in the high-end and luxury segment. The rest were in the upscale segment with none at the middle- to lower-end.
Meanwhile, property developer KPN Land will launch a new luxury condo project on May 25, said chief executive Rawee Tahtniyom.
The project is a joint venture development with Singaporean developer Keppel Land called Shaa.
With a sales value of 2.5 billion baht, the project would be located on a one-rai site on Sukhumvit Soi 19 and comprise a 24-story tower with 143 units sized 34.25-113.25 sqm and priced at 320,000 baht per sqm on average.
The company targets having 50% of units sold during the launch period and will stage a roadshow in Singapore in July this year to introduce the project there, aiming to sell 30% to foreign buyers.
Sam Moon Thong, president of regional investments at Keppel Land, said investment in the property sector in Thailand is attractive because of the market’s potential, particularly in Bangkok, which is benefiting from increasing urbanization and a growing middle class.
“The economy is improving and investment sentiment becomes more attractive due to political stability and no chaos,” he said.
“We are keen to invest more in high-end residential developments in Bangkok, as demand remains high.”
source: https://property.bangkokpost.com/news/1461126/sukhumvit-still-popular-with-buyers
by kevinyeo | May 18, 2018 | News
A shortage of land and the new supply of high-end condos on the banks of the Chao Phraya River has driven luxury residential prices to rise by 80% on average from 2014-18, says property consultant JLL Thailand.
JLL managing director Suphin Mechuchep said prices of riverside condos in the luxury and ultra-luxury segment rose to 250,000-300,000 baht per square meter from at least 140,000 baht five years ago.
“To develop a riverside condo project, plots should be large as a setback from the river is required,” she said. “There are rarely large riverfront plots available for new property development on Charoen Krung Road.”
The Bangkok Metropolitan Regulation said for building control, a new building within 45 meters of a river bank must not be higher than 16m.
With land for new condo development scarce and no new condo supply launched last year, the sales rate of riverside condo projects under construction was 80% on average.
Completed projects had sales rates of 95%, she said, and buyers in this segment were those buying for both to live in and as an investment. Some want a riverside unit to build their investment profile.
JLL research found the outstanding number of luxury and ultra-luxury condos in Bangkok totals around 17,200 units, merely 3% of the total condo supply in Bangkok.
Of 17,200 units, 15% or about 2,600 units were on the banks of the Chao Phraya River, said Mrs Suphin.
She said riverfront land shortage has also made the average price of riverside condos in the luxury segment 15% higher than condos in the central business district (CBD).
In the ultra-luxury segment, the average price of riverside condo supply was 5-6% higher than in the CBD.
The riverside condo supply on Charoen Krung and Charoen Nakhon roads comes from six projects, of which half are hotel-branded residences.
Mandarin Oriental at Iconsiam and Banyan Tree are on haroen Nakhon Road and Four Seasons is on Charoen Krung Road, with a current selling price of between 300,000-350,000 baht per sqm.
Menam Residences on Charoen Krung Road is worth 4 billion baht and has 294 units.
The project has 26 units worth a combined 785 million baht or only 5% available for sale. It aims to close sales by the end of the year.
Daecha Tangsin, chief executive of the project’s developer Menam Residences Co, said over 90% of sold units were bought by Thais and the other 10% were bought by Chinese.
“Foreign buyers’ behavior in the high-end segment has changed since four years ago. They are shifting to riverside projects from the Sukhumvit area,” he said.
Mr Daecha, who also owns the over-30-year-old Ramada Plaza Menam Riverside Bangkok Hotel, located next to Menam Residences, has seen a change in the behavior of tourists who preferred Bangkok’s riverside area.
“These tourists changed from cultural tourism 30 years ago to shopping after open-air night market Asiatique The Riverfront pioneered the riverfront market,” he said.
Asiatique neighbors his hotel that attracts a large number of Chinese tourist arrivals.
His hotel, with an average room rate of 3,000 baht per night, are expected to see occupancy this year to rise to over 90% from 87% last year.
In the first quarter this year, occupancy was 95%, up from 90% in the same period last year, he added.
Mr Daecha said the company has a six-rai riverfront plot next to the hotel available for development, in which it plans to invest 4 billion baht to develop a 250-room hotel and a convention hall next year.
source: https://property.bangkokpost.com/news/1460434/riverside-luxury-prices-soar
by kevinyeo | May 17, 2018 | News
Condominium prices on Sukhumvit, from the low-numbered sois to Ekamai, will likely remain high, says property consultant Knight Frank Thailand.
It conducted research and found the average selling price per square meter for condos from Sukhumvit sois 1 to 63 stood at 181,800 baht, as of the end of 2017.
This is an increase of 15% on the previous year. Prices have risen steadily in line with the cost of limited land plots, particularly along the main road.
As a result, many real estate operators have turned their attention to the outer Sukhumvit area, such as from On Nut to Samrong, given its prime location, cost of land, and supporting infrastructure and public utilities. In terms of location, On Nut-Bearing-Samrong boasts connectivity via the Skytrain, luring developers for a range of mixed-use projects.
Bangkok Mall, a joint project of The Mall Group and City Realty Co, will sit on 100 rai on Bang Na-Trat Road, across from Bitec Bang Na. It will contain a shopping complex, condominiums, serviced apartments and office buildings for rent, comprising 650,000 sqm. It is expected to open in 2022.
There are also recently opened developments such as M Tower, a 21-story office and retail structure with a total area of over 14,500 sqm on Sukhumvit Soi 62 near Bang Chak BTS station, as well as Bhiraj Convention Centre, located at Bitec Bang Na.
The ongoing development of the mass transit rail system from On Nut to Samrong continues to be an important factor, such as the Dark Green Line or the extension from Bearing to Samut Prakan that is connected to the Huamark-Samrong Yellow Line at Samrong station. Both lines are expected to be completed in 2018 and 2021, respectively, according to the Mass Rapid Transit Authority of Thailand.
The On Nut-Bearing-Samrong condominium markets, which cover an area from Sukhumvit Soi 77 to Theparak Road and Sukhumvit Soi 50 to Phuchao Saming Prai Road, had a cumulative supply of 62,361 units as of the fourth quarter 2017. In terms of demand, condominiums for sale in these areas have been very well received by buyers for projects launched from 2010 to 2018, with an average sales rate of 96%, while projects launched in 2009 are sold out.
Focusing on newly launched projects in 2017, the average sales rate is 65%, a slight decrease from the previous year. This corresponds to the supply entering the market, which is reduced as well.
Analysis by Knight Frank Thailand Research found high-rise condominiums remain popular among buyers in these areas — sales of all such projects launched in 2017 exceed 60%, with some enjoying a 90% sale rate.
When analyzing sales prices in depth by area, it was discovered that, when compared to Ekamai, the average selling prices per sqm in On Nut, Bang Na, and Bearing-Samrong, are significantly lower.
Ekamai commands an average sales price of 154,500 baht per sqm, while On Nut, Bang Na and Bearing-Samrong have an average sales price per sqm of 105,600 baht, 86,600 baht, and 63,500 baht, respectively. Clearly, prices in On Nut, Bang Na and Bearing-Samrong are lower than in Ekamai, especially when looking at the figures in percentage terms: 32%, 44%, and 59%, respectively.
These areas warrant attention in terms of the significant increase in condominium supply and demand in the near future, reinforced by many positive factors, especially the ease and convenience of the transit system as well as mixed-use developments in these areas. Sale prices of condos here have the potential to rise steadily, but will remain moderate, compared with nearby areas Thong Lor and Ekamai.
source: https://property.bangkokpost.com/news/1455769/developers-turn-to-upper-sukhumvit
by kevinyeo | May 12, 2018 | News
Bangkok’s condominium market remains bright, driven by rail expansions and an increasing focus on convenience among buyers, says Knight Frank Thailand Research.
In 2017, 62,751 new units entered the market, an increase from 19% in 2016, said the property consultant firm.
The average annual total sales rate was about 76%, reflecting growth from the 74% seen in 2016. The most popular locations continue to be around the Light Green Line (Sukhumvit) and the MRT Blue Line.
As for the central business district (CBD), Sukhumvit remains the most popular area, with about 11,000 new units coming into the market; this was followed by Wireless Road, Silom and Sathon with 2,300 units, and Rama IV with 817 units.
Beyond the CBD, real estate development companies focused their attention on Rama IX-Ratchadaphisek, Phahon Yothin, Lat Phrao and On Nut-Bearing, with 19,000 new units entering the market.
In 2017, the CBD and surrounding areas experienced average sales rates of 78% and 71%, respectively, while new suburban projects averaged an annual sales rate of 80%.
This serves as a good indicator of consumer confidence in the market, the consultancy said. The selling price per square meter rose in all segments, particularly the CBD, which has limited plots of land suitable for the development of new projects.
As a result, land prices soared, which is reflected in the sale prices. New projects in the CBD commanded average sales price of 248,267 baht per square meter, while the area around the CBD was priced at 131,521 baht per sqm, and new projects in the suburbs averaged 79,871 baht per sqm, increasing from 2016 by 8.6%, 1.2%, and 6.5%, respectively.
For the first quarter this year, there were 12,563 new condominiums entering the market, and new units enjoyed sales of 55%. Over half of them were launched in March 2018.
The average selling price per sqm in the CBD and surrounding areas clearly contracted from the same period of last year. This is because projects launched this quarter are located in less prominent areas, with lower grade specifications.
But the average sales price of a new unit in the suburbs grew to a record-high 110,353 baht per sqm, up 61% compared with the first quarter of 2017 and up 38% from the entire year.
The scarcity of land in the city is a factor, coupled with steadily rising land prices. Many operators are also increasingly turning their attention towards peripheral areas.
In this quarter, one project had an offering price of more than 110,000 baht per sqm. With six projects launched in the suburbs, the average selling price per square meter was pushed higher than previous years.
This year, the market outlook for suburban areas and around the CBD sees both locales with opportunities for growth, according to Knight Frank, especially for projects near mass transit train lines or no farther than one kilometer from the lines.
Such areas should continue to receive heightened attention from large and mid-scale property developers.
source: https://property.bangkokpost.com/news/1463478/knight-frank-trains-and-convenience-propel-condos
