The condominium prices in the early Sukhumvit area up to Ekkamai continue to remain strong. According to the latest research by Knight Frank Thailand, the average selling price per square meter of condominiums from Sukhumvit Soi 1 to 63 at the end of 2017 was 181,800 THB, an increase of 15% from the previous year. Prices are expected to keep rising due to limited land availability, especially for plots adjacent to major roads. This has led many real estate developers to turn their attention to the late Sukhumvit area, from On Nut to Samrong, due to several advantages such as location, land cost, and well-developed infrastructure. The On Nut-Bearing-Samrong area can conveniently connect to the inner city areas like Sukhumvit, Phloenchit, and Silom via the BTS Skytrain, prompting various real estate developers to invest in diverse projects in this area. Currently, notable mixed-use projects in this location include:

     1) Whizdom 101, Thailand's first lifestyle complex that combines residential units, office buildings with co-working spaces, retail areas, and a large public park over an area of more than 350,000 square meters at the entrance of Sukhumvit Soi 101. Developed by Magnolia Quality Development Corporation Limited, the first phase of the Whizdom 101 Innovation Lifestyle Complex, covering 40,000 square meters, is set to open in October 2018.

     2) Bangkok Mall, a mega project from The Mall Group and City Realty Co., Ltd., covering 100 rai on Bang Na-Trad Road, opposite BITEC Bang Na. It will feature a shopping center, condominiums, serviced apartments, and office spaces under the concept of City within the City, with a total area of 650,000 square meters, expected to open in 2022.

          Additionally, there is the recently opened M Tower, a 21-story office and retail building with a total area of over 14,500 square meters located on Sukhumvit 62, near BTS Bang Chak and the Pirun Convention Center at the BITEC Bang Na. Furthermore, the development of the mass transit rail system in the On Nut-Bearing-Samrong area remains a crucial factor in transforming the area into a more vibrant location, including the dark green line extension from Bearing to Samut Prakan, which connects with the yellow line from Hua Mak to Samrong at the Samrong station. Both lines are expected to be completed in 2018 and 2021, respectively (Source: Mass Rapid Transit Authority of Thailand).

          Graph 1

          Cumulative Supply in the Study Area from 2009 to 2017

The cumulative supply increased from 57,622 units in 2016 to 62,361 units in 2017, growing at an average rate of 8.2% per year.

          For the condominium market in the On Nut-Bearing-Samrong area, which covers from Sukhumvit Soi 77 to Theparak Road and from Sukhumvit Soi 50 to Pu Chao Saming Prai Road, at the end of Q4 2017, there was a total cumulative supply of approximately 62,361 units. In terms of demand, condominiums launched in this area received a positive response from buyers, with projects launched between 2010 and 2017 achieving an average sales rate of about 96%. Projects launched in 2009 sold out completely. However, focusing solely on projects launched in 2017, the average sales rate was about 65%, slightly down from the previous year, in line with the decrease in supply entering the market. Nevertheless, research from Knight Frank Thailand indicates that high-rise condominiums remain popular among buyers in this area, as reflected in the sales of all high-rise projects launched in 2017, which exceeded 60% for every project, with some projects achieving sales as high as 90%.

          Graph 2

          Supply by Grade

 

          Graph 3

          Cumulative Statistics of Condominiums in the Study Area from 2009 to 2017

The cumulative demand increased from 52,789 units in 2016 to 55,845 units in 2017, growing at an average rate of 5.8% per year.

 

 

          When analyzing the selling prices by location, it is found that compared to Ekkamai, the average selling price per square meter of condominiums in the On Nut, Bang Na, and Bearing-Samrong areas is significantly lower. Currently, Ekkamai has an average selling price of approximately 154,500 THB per square meter, while On Nut, Bang Na, and Bearing-Samrong have average selling prices of approximately 105,600 THB, 86,600 THB, and 63,500 THB, respectively. When compared as percentages, it is clear that the On Nut, Bang Na, and Bearing-Samrong areas have selling prices lower than Ekkamai by 32%, 44%, and 59%, respectively.

          This area is thus one to watch for a significant increase in demand and supply of condominiums in the near future, supported by several positive factors in the area, especially the improved transportation that will become more convenient, along with the expansion and launch of mixed-use real estate projects in the area. The selling prices of condominiums in this area are expected to continue to rise but remain at a relatively low level compared to nearby locations like Thonglor and Ekkamai, making it an interesting option for both developers looking to invest, individuals seeking to buy for personal residence, and investors looking to rent or resell.

          Graph 4

          Average Asking Price/Sq.m. of Supply in the Study Area

          Graph 5

          Comparison of Cumulative Supply from 2009 to 2017, Current Sales, and Average Asking Price per Sq.m. of Supply in the Study Area

Thank you for the information from  www.knightfrank.co.th