Looking back at the market in 2018, we can see that “Thonglor-Ekkamai” has become a popular location among both large and medium-sized developers. TerraBKK Research summarized the market at the end of the year, noting that Thonglor-Ekkamai has become a zone bustling with new projects. This is not surprising, as many changes are expected in the future. Originally a standout location on Sukhumvit, Thonglor-Ekkamai will soon see new developments such as the arrival of new shopping centers and the expansion of the BTS system, which will surprise the local residents. Additionally, the growth of condominium rental prices and land appraisal values has outpaced other alleys on Sukhumvit, indicating that this year, Thonglor-Ekkamai will undoubtedly remain a popular area.

Traveling from Central Sukhumvit to Surrounding Areas

           When it comes to convenience in transportation, Thonglor-Ekkamai excels. Along Sukhumvit Road, there are only a few alleys that are wide, four-lane roads, which not only create a more spacious atmosphere but also allow for better traffic flow. These roads provide easy access to surrounding areas, including the New CBD of Ratchada-Rama 9, the lifestyle zone of Phrom Phong, the new Japanese community in Phra Khanong, and the eastern area of Pattanakarn-Ramkhamhaeng.

           For those who do not wish to venture out, the Thonglor-Ekkamai area itself has everything you need. For party-goers, there are many famous high-end hangout spots. Families can enjoy community malls catering to all ages, and food lovers will find Thonglor-Ekkamai to be one of the best areas for renowned restaurants in Sukhumvit. Even globally recognized chains like Iron Chef Table have chosen to open their first branch in Thonglor.

           Additionally, there are reports that the Gray Line of the BTS has been revived. This line is crucial as it runs through the city from Thaphra to Watcharapol. The Gray Line is divided into three phases: Phase 1: Thonglor-Watcharapol, Phase 2: Phra Khanong-Rama 3, and Phase 3: Rama 3-Thaphra. The highlight of Phase 1 is that it runs through Thonglor, connecting to Rama 9 Road, Ladprao Road, and Prasert Manukitch Road, heading towards Watcharapol. Once completed, the Gray Line will make it easier for Thonglor residents to connect to the Green Line.

Land Appraisal Prices in “Thonglor-Ekkamai” Surpass Other Alleys on Sukhumvit

            One key factor driving “Thonglor-Ekkamai” to become a sought-after location on Sukhumvit is the land appraisal prices from the Treasury Department, which change every four years. Although these are not actual sale prices, the growth rates provide a good analysis of the potential of the area.

            TerraBKK Research has collected historical land appraisal prices from the assessment periods of 2004-2007 to 2016-2019, comparing only prominent Sukhumvit alleys such as Nana (Sukhumvit 3), Phrom Phong (Sukhumvit 39), Thonglor (Sukhumvit 55), and Ekkamai (Sukhumvit 63). It was found that both Thonglor and Ekkamai have seen significantly higher land appraisal price growth compared to other alleys. Since the 2004 assessment period, Thonglor and Ekkamai have experienced an average land appraisal price growth of 50% per assessment period.

 

From Pre-Sale Prices to Resale

            Despite the active launch of new condominiums, looking back to 2007, new condos were launched at prices around 60,000-70,000 baht per square meter. Currently, those projects are being resold as second-hand units at prices of 100,000-130,000 baht per square meter, yielding a profit of about 5-8% per year. This trend applies to projects launched in other years as well. TerraBKK Research has compiled projects launched from 2007-2017 and compared them with current resale prices (2018) to analyze how prices have increased.

            The graph below shows that the gray dots represent the price at the time of launch for the year indicated below (X-axis), while the blue dots represent the resale price in 2018. For example, in 2010, a condo launched at 100,000 baht per square meter is now being sold as a second-hand unit at approximately 150,000 baht per square meter, indicating an annual price increase of about 7% for projects launched in 2010.

            Overall, regardless of the year a condominium was launched, when resold as a second-hand unit, prices have increased by an average of 5-10% per year, depending on the project's location and the unit's position.

            This aligns with the overall resale condominium market in Thonglor-Ekkamai, where prices have been increasing by approximately 5-7% per year. The image below provides an overview of the market, showing how resale prices have increased each year.

“Thonglor-Ekkamai”: The Area with the Highest Rental Demand on the Websiteterrabkk.com

            When discussing the investment potential of the Thonglor-Ekkamai area, simply citing rental rates may not fully reflect its true investment attractiveness. TerraBKK Research has collected visitor statistics for rental condo listings across various rental price levels, revealing that in the 20,000-50,000 baht per month range, the “Thonglor-Ekkamai” area has the highest number of visitors on www.terrabkk.com. This reflects the interest of individuals looking to rent condos in this price range, with “Phrom Phong-Thonglor-Ekkamai” being the top choice, followed by “Asoke-Phetchaburi” and finally “Silom-Sathorn”. The Heat Map below indicates the number of visitors to listings, with red indicating higher traffic.

           The most commonly rented units are typically Studio and 1 Bedroom types. TerraBKK Research has tracked rental prices per square meter over the past four years (for 1 Bedroom types) to observe trends in the Thonglor-Ekkamai area. It was found that rental prices in this zone have been steadily increasing over the past three years, until 2018, which saw a significant number of new projects launched, causing rental rates to slow down slightly. However, the rental rate of 750-1,000 baht per square meter per month is still considerably higher than in other areas, translating to a rental yield of about 5-7% per year.

           

           It is undeniable that “Thonglor-Ekkamai” is the most prominent area on Sukhumvit Road. However, it is also noticeable that this area undergoes changes periodically. In a few years, we can expect to see Thonglor-Ekkamai transform significantly due to both public and private sector developments, along with condominium prices continuing to rise in line with the area's trends.