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.