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Bangkok city condominiums

The Nation September 15, 2009 New projects spring up as demand growsSkytrain maintains Sukhumvit Road and vicinity as the most popular area Leading property developers are launching a large number of condominium projects in Bangkok's central business district, especially around Silom, Sukhumvit and Sathorn roads. The Sukhumvit area, from Chidlom to Ekamai, is one of the most popular locations around the route of the Skytrain. For example, Preuksa Real Estate has launched The Seed Musee, with a market value of Bt600 million, in Sukhumvit Soi 26. The project is about 400 metres from the Phrom Phong Skytrain Station and offers only 138 units at prices starting from Bt3.5 million. Asian Property Development has also opened presales for its latest luxury condominium, The Address Sukhumvit 28, which is worth Bt2 billion. The company has introduced two more projects in Soi Asoke and on Sathorn Road. The combined value of the three projects is Bt9.5 billion. According to developer and project consultant Aquarius Estate, there were 15 condominiums with a total of 2,178 units launched in the Sukhumvit area, from Chidlom to Ekamai, in 2007. This number fell to 13 projects offering 1,661 units in the same area last year, while in the first eight months of this year, five projects were launched with a total of 793 units worth nearly Bt10 billion. Further along Sukhumvit Road, the Phra Khanong-Onnuj area has also been popular, with 13 new projects offering 2,535 units launched in 2007, four projects with 1,177 units last year and three projects with 658 units in the first eight months of this year. From Onnuj to Bang Na, eight projects with 3,684 units were launched in 2007, four projects with 1,897 units last year and only one project with 79 units in the first eight months of this year. Combining the numbers, 66 condominium projects offering 14,662 units were launched in the Sukhumvit area, from Chidlom to Bang Na, between the start of 2007 and the end of last month. Although there has been no surge in the number of new condominium projects in the Sukhumvit area since 2007, the price of condominium units in the area has continued to grow, because of strong demand, following the start of construction on the Skytrain extension from Onnuj to Sukhumvit Soi 107. A survey by The Nation found prices in the area had risen from an average Bt74,109 per square metre in 2007 to Bt93,640 at present. Condominiums in the Phrom Phong-Thonglor area were demanding higher prices than those elsewhere in the Sukhumvit area, with average prices of Bt124,080 per square metre and a peak of Bt140,187 per square metre for grade-A condominium units. Presales at condominium projects in the Sukhumvit area continue to reach a high 50-60 per cent of total project value. Sathorn and Silom roads also are popular locations for city condominiums, with prices starting at Bt100,000 a square metre. The market in Sathorn and Silom consists more of foreign buyers and investors than local buyers. As a result, most developers there offer luxury residences. For example, Saladaeng Residence, developed on Silom Road by Pace Development, has a market value of BtBt2.5 billion. Pace is also part of a joint venture with Israel investors that has launched a luxury integrated complex called the Mahanakorn project, worth Bt18 billion, on Narathiwat Road, next to Chong Nonsi Skytrain Station. The Mahanakorn project will have a luxury condominium with a market value of Bt12 billion, offering prices of Bt250,000 per square metre, or a starting price of Bt30 million per unit. Real-estate consultancy CB Richard Ellis (Thailand) says condominiums in Bangkok can be divided into six categories. The first, super-luxury condominiums, offers prices of more than Bt180,000 a square metre. Luxury condominiums have price tags between Bt130,001 and Bt180,000 a square metre; condominiums for the high-end market are priced between Bt100,001 and Bt130,000 a square metre; upper-market condos sell for Bt80,001 to Bt100,000 a square metre; middle market for Bt60,001 to Bt80,000 a square metre; and economy condominiums are priced below Bt60,000 a square metre. CB Richard Ellis (Thailand) managing director Aliwassa Pathnadabutr said condominiums in the top three categories were generating returns on investment averaging 10-12 per cent per year from rental income for owners who bought in 2007. Those returns are better than can be expected from other businesses, she said. The company said foreign investors continued to buy high-end condominium units in Bangkok. Investors from Singapore made up 23 per cent of all foreign buyers in the first quarter. Fifteen per cent were from the United Kingdom, with the rest from Italy, Japan, the United States, South Korea, Lebanon and Switzerland. City Resort Group managing director Chaivai Poonlapmongkol said demand for city condominiums in the Sukhumvit, Silom and Sathorn areas had continued to grow. His company has bought land in the Sukhumvit area on which it plans to develop an eight-storey condominium project next year, offering units at a starting price of Bt80,000 a square metre. "Our target customers will be foreigners interested in buying at this location," he said.

 

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