This year, we are likely to see a significant number of condominium launches concentrated in the Phaholyothin-Sena Nikhom area. It’s important to emphasize that this is particularly noteworthy because this location has been relatively quiet in terms of new condominium developments for a long time. From Lat Phrao Intersection to Kaset Intersection, there are nearly 10 new condominium projects opening this year, totaling over 5,700 units, and each project is selling exceptionally well. For instance, the Knightsbridge project, which launched two developments in this area, nearly sold out within a single day. Additionally, the highly anticipated Life Ladprao project, located at Lat Phrao Intersection, has seen a bustling queue for reservations. Today, TerraBKK Research will outline the new projects this year, highlighting what makes them interesting and why this location is the most noteworthy to watch in 2017.

New Projects Launching and Absorbing Over 70%

                In 2017, nearly 10 new condominium projects have launched, totaling over 5,700 units, with launch prices ranging from 1.6 to 3.5 million baht, depending on proximity to the BTS. Projects located in side streets tend to be priced lower. Currently, the best-selling project is Knightsbridge Prime Ratchayothin, which sold 90% of its units on the first day of pre-sales.

                When asked which projects are noteworthy, it’s clear that each has its unique selling points. Here are the details of each project:

                From the chart below, it can be seen that the new supply in the market, totaling over 5,700 units, has been absorbed by 50%. However, it should be noted that the actual absorption rate is 70% because the Elio Del Moss Phaholyothin 34 project from Ananda, which will open with over 1,500 units, has not yet started sales (set to launch at the end of this year). To provide a complete picture of this year, we include the Elio Del Moss Phaholyothin 34 project, which means that the remaining supply in the market consists of both affordable and expensive options. As mentioned, the Elio Del Moss Phaholyothin 34 project has a large number of units and is launching at a low price, starting at just 1.59 million baht, or 66,000 baht per square meter. This significantly increases the supply in the segment priced under 100,000 baht per square meter. However, if we consider that most condominiums in this area are priced at around 120,000 baht per square meter due to their proximity to the BTS Green Line extension, the prices jump compared to projects located in side streets.

New Project Prices in Phaholyothin-Sena Nikhom Jump Over 20% Annually

                Upon seeing the launch prices of each project, one might be surprised that even before the BTS is completed, prices have already reached 120,000 baht per square meter. Looking back to last year, when construction began on the Green Line extension from Mo Chit to the new bridge and Kukot, the launch prices for condominiums were around 60,000-70,000 baht per square meter. However, as the BTS project has taken shape, the launch prices for condominiums in the Phaholyothin-Sena Nikhom area have surged to 120,000 baht per square meter. It’s quite surprising that even before the BTS is operational, prices have reached this level. What will happen when the BTS is operational?

                It can be said that the Phaholyothin-Sena Nikhom area has become popular due to two major factors: “the BTS and job/education centers.” It must be acknowledged that the Green Line extension (Mo Chit-New Bridge-Kukot) significantly impacts condominiums in this area because it connects directly to Mo Chit without the need for complicated transfers. This is a key reason why this location has suddenly boomed, despite previous indications that there wouldn’t be such a rush of condominium openings. What’s even more surprising is the dramatic price increase, from 60,000-80,000 baht per square meter to current prices of 120,000-130,000 baht per square meter.

               

Additionally, it is close to important job centers like SCB Park, known for its high-quality employees with substantial incomes... Of course, the buyers are primarily from SCB, who are likely to settle down and stay long-term. Furthermore, it is near Kasetsart University, which has a population of over 40,000 students and faculty members. Therefore, it’s not surprising that this area attracts investors looking to rent out properties for long-term profit. This group is likely to be the main buyer demographic in this zone, as surveys conducted during the pre-sales of each project revealed that most attendees were investors intending to purchase for student rentals.

                In three years, when the BTS is completed, the Phaholyothin-Sena Nikhom area is expected to see even higher launch prices for new condominiums. However, TerraBKK Research also anticipates that the current prices have already jumped significantly from previous market prices, and there is a possibility of supply saturation in the market or prices becoming unsustainable, similar to the Purple Line situation. - TERRABKK