LPN Wisdom Unveils 3 Potential Locations for Residential Development

 

LPN Wisdom reports that the demand for housing in the "Charan-Chatuchak-Ladprao 101" area is continuously growing for both single-family homes and condominiums. This is due to the development of public transportation systems, including the subway and expressways, which have made it easier to connect to business districts. As a result, land prices in each area have surged by no less than 10% per year.

 

Mr. Prabhan Sak Raksaiwan, Managing Director of LPN Wisdom and Solutions Co., Ltd., a research and development company under L.P.N. Development Public Company Limited (LPN), revealed the results of a survey on housing demand in 3 locations, including "Charan-Sanit Wong-Chatuchak-Ladprao 101". These areas show a continuous increase in housing demand due to the development of public transportation systems, leading to an average increase in land prices of over 10% per year. The prices of both old and new residential properties have also risen in line with the increasing land prices.

 

The survey found that the "Charan-Sanit Wong" area is primarily developing condominiums, especially near the subway stations. In 2020, condominiums in the Charan area had an average capital gain of 8% per year from purchase to sale. The average price of condominiums in this area ranges from 80,000 to 120,000 baht per square meter, which is a 20% increase from 2017, and prices are expected to continue rising due to urban expansion along the blue subway line. Currently, there are 965 unsold condominium units in the Charan area, with an average sales rate of 5% per month and an average selling price of 89,700 baht per square meter, or approximately 2.8 million baht per unit.

 

“At the same time, the demand for rental housing in this area has also been steadily increasing, even before the completion of the blue subway line. This area is home to medical facilities such as Siriraj Hospital, Thonburi Hospital, and Yanhee Hospital, resulting in a significant number of medical personnel seeking accommodation close to their workplaces. The average rental price in the Charan-Sanit Wong area is 350 baht per square meter per month, with the average rent for 30-35 square meter rooms at around 10,000 baht per month. Studio-type rooms average between 6,000 and 8,500 baht per month, with a rental yield of 5% per year,” Mr. Prabhan stated.

 

As for the "Chatuchak-Pakkret" area, it has seen an average growth rate of new projects between 100% and 250% per year. According to the research team's findings, by the end of 2020, the Chatuchak area had a cumulative supply of 10,325 units, consisting of 15% single-family homes and 85% condominiums. The sales rate for single-family homes is 3.1% per month, while the sales rate for condominiums in the area is 5%, which is higher than the average sales rate for single-family homes in Nonthaburi at 2.8% per month and condominiums at 4% per month.

 

The growth of residential development in this area has led to a continuous increase in land prices in the "Chatuchak-Pakkret" area, with an average annual increase of 12.5%. Consequently, housing prices in this area have risen by an average of 15-20% per year, especially for single-family homes in the Chatuchak-Muang Thong Thani area, which have increased by up to 20% per year. In the secondary market, the capital gain is around 7-8% per year, with rental prices ranging from 28,000 to 35,000 baht.

 

“It is expected that once the red and pink subway lines are operational, the demand for housing in the Chatuchak area will further increase, along with rising housing prices,” Mr. Prabhan added.

 

Currently, new single-family homes in the Chatuchak area are available at various price levels, starting from 2 million baht for townhomes to over 10 million baht for single-family homes. This makes the Chatuchak-Pakkret area suitable for those looking for residential options in a potential location that is conveniently located near workplaces and educational institutions, with complete amenities and investment potential.

  

Meanwhile, the development of all four subway lines surrounding the "Ladprao 101-Phokaeo" area, including the yellow, orange, gray, and brown lines, is currently underway. The yellow and orange lines are scheduled to be completed by 2022 and 2024, respectively, which will facilitate easier travel throughout Bangkok.

 

"Ladprao 101 - Phokaeo" is one of the potential areas in the northern zone of Bangkok. Currently, there are 14 new residential projects available in this area, divided into 7 single-family and twin-house projects, with selling prices per unit exceeding 10 million baht. The remaining units account for 16% of the total units available, with an average sales rate of 2% per month. The other 7 projects are townhomes, with remaining units accounting for 22% of the total available, and average selling prices per unit divided into three price ranges: 3-5 million baht, 5-10 million baht, and over 10 million baht, with average monthly sales rates of 7%, 3%, and 4%, respectively. Currently, there are about 420 unsold units in this area, which is expected to be sold out within 3 years.

 

In the secondary housing market in the area, selling prices start at 8 million baht for single-family homes, with rental prices starting at 35,000-120,000 baht per month. For two-story townhomes, prices start at 2 million baht, while three-story townhomes start at a minimum of 3.70 million baht and can go up to 6.50 million baht, with rental prices starting at 18,000-45,000 baht per month, depending on the condition or age of the house, usable area, and distance from main roads. The rental rates are comparable to mortgage payments, making new residential projects attractive and worthwhile for those seeking housing.

At the same time, the new city plan, which will be announced soon, has adjusted land use in the "Ladprao 101-Phokaeo" area from yellow to orange, indicating medium-density residential areas. This allows for increased land development from FAR 3:1 – OSR 10% to FAR 3.5:1 – OSR 8%, enabling the development of condominium projects smaller than 10,000 square meters or larger than 10,000 square meters. Major developers still have large plots of land awaiting development in the surrounding areas, which will likely lead to further increases in land prices. Currently, the lowest land sale price in this area is 50,000 baht per square wah, located in the middle of Ladprao 101 alley, while the highest price is 130,000 baht per square wah for land close to Prasert Manukit Road or Ladprao Road.

 

“The development of public transportation has expanded the city from the original economic areas like Sukhumvit, Ploenchit, and Sathorn to new economic zones. All three areas, namely "Charan-Sanit Wong-Chatuchak-Ladprao 101", represent new business districts that are spreading out from the original Central Business District, creating opportunities for investment for entrepreneurs and those looking to purchase affordable housing with convenient transportation options, including both condominiums and single-family homes,” Mr. Prabhan concluded.

 

For more information, contact LPN Call Center at 02-689-6888 or Facebook: LPN Connect or LINE OA application at @LPNConnecthttp://bit.ly/PR-LPN-2020