“LWS” has launched 3 prime locations: “On Nut, Bangna-Trad, and Sukapiban 5” for the development of high-end residential properties, targeting affluent buyers. The average sales rate at the project's launch was between 20-30% of the project's total value.

As land prices in these areas are trending upwards, the opportunity for residential development is slowing down due to rising project development costs. Consequently, the focus for residential projects in these 3 locations is on properties priced over 10 million baht, catering to the demand from target buyers seeking homes in high-potential areas.

Mr. Prabhan Sak Raksaiwan, Managing Director of LWS Wisdom and Solutions Co., Ltd. (LWS), a real estate research and development company under the LP.N Development Public Company Limited, noted that LWS's survey shows that real estate developers are increasingly interested in developing residential projects priced over 10 million baht to meet the growing purchasing power in the market and to avoid the high rejection rate for housing loans (Rejection Rate), which currently stands at 70% for loan applications under 3 million baht due to concerns about borrowers' repayment capabilities and the quality of loans that are starting to face issues.

“Given this situation, the proportion of new project launches by real estate developers is shifting towards higher-priced residential projects. According to the latest survey in the first quarter of 2024, there were 24 new residential projects priced over 10 million baht, totaling 1,896 units, representing a 117% increase compared to 874 units launched in the same period of 2023. The total value of new project launches in the first quarter of 2024 for residential properties priced over 10 million baht is 45.056 billion baht, an increase of 166% from the 16.264 billion baht in 2023, with an average sales rate at launch of 9%, consistent with the average sales rate of 9% in the same period of 2023. The average selling price for homes over 10 million baht is 23.8 million baht per unit, up 22.68% from the average price of 19.4 million baht per unit in 2023,” Mr. Prabhan Sak stated.

The 3 prime locations with high sales are On Nut, Bangna-Trad, and Sukapiban 5.

Based on this trend, LWS surveyed areas where residential projects priced over 10 million baht are being launched in Bangkok and its vicinity, identifying the top 3 prime locations with the most project launches: On Nut, Bangna-Trad, and Sukapiban 5.

In the On Nut area, there have been a total of 14 residential projects priced over 10 million baht, with a total of 491 units available for sale. The average sales rate at the launch of these projects is 29%. This includes 4 townhouse projects starting from 14.9 to 27.6 million baht per unit, totaling 118 units, with a sales rate at launch of 33%, averaging 9-10 sales per month per project. There are also 4 duplex projects priced from 10 to 35 million baht, totaling 118 units, with a sales rate at launch of 31%, averaging 9 sales per month per project, and 6 single-family home projects priced from 14 to 45 million baht, totaling 255 units, with a sales rate at launch of 27%, averaging 11 sales per month per project.

The On Nut area is suitable for living due to its convenient access by both private and public transportation. The area can be easily accessed via Soi On Nut 46, which connects to Sukhumvit 101/1 or Sukhumvit 103, helping to avoid congested routes. It also connects to Srinakarin Road, which leads to Ladprao and Bangkapi. There are two BTS lines available: the Green Line (the main line into the city center) and the Yellow Line. The area is surrounded by various amenities, including convenience stores like Lotus and Big C, as well as large shopping centers such as People Park On Nut, Seacon Square Srinakarin, Paradise Park, and True Digital Park.

Additionally, there are 6 hospitals, both public and private, within a 5-kilometer radius, including Ruam Jai Rak Hospital, Bangkok Hospital, Sinphat Hospital Srinakarin, Thai Nakarin Hospital, and Bangna 1 Hospital. There are also many educational institutions in the area within 5 km, mostly international schools, totaling up to 10, such as Wells International School, Centurion International School, Berkeley International School, and Glory Singapore International School.

In the Bangna-Trad area, Km 10-30, there are new residential projects priced over 10 million baht, with 3 new projects launched in the first quarter of 2024, totaling 275 units, with an average selling price of 20-50 million baht per unit and an average sales rate at launch of 12%. This area is ideal for living, with convenient access along Bangna-Trad Road, connecting to Sukhumvit Road, Srinakarin Road, Kanchanaphisek Road, and King Kaew Road, which are key routes in Eastern Bangkok. It also connects to the Chalerm Maha Nakhon Expressway for easy access to the city center and important business districts (Central Business District: CBD). For those using public transport, the Green Line BTS connects directly to the city’s business district. Additionally, this area has job opportunities in offices and industrial estates, making it a suitable location for both living and working, representing a new business district in the eastern region.

Moreover, the area is well-equipped with amenities including shopping malls like IKEA and Central, as well as hospitals, schools, and universities that cater to all lifestyle needs of every generation.

In the Sukapiban 5 area, there are currently 2 new residential projects priced over 10 million baht launched in the first quarter of 2024, totaling 335 units, with an average selling price of 10-30 million baht per unit and an average sales rate at launch of 7%. This area is also suitable for developing high-priced residential properties, with convenient transportation routes connecting to several roads, including Sukapiban 5 Road, Phahonyothin Road, Watcharapol Road, the Ram Inthra-At Narong Expressway, and connections to the Green Line BTS extension at Sai Yud Station or the Pink Line BTS at Watcharapol Station.

Additionally, the area has essential amenities including Big C, Central Festival Eastville, The Crystal, Fashion Island, and leading educational institutions such as Sarasas Witaed Saimai School, Kira Path International School, and hospitals like Sai Mai Hospital and Central General Hospital, meeting the needs of residents in all aspects of life.

“While the real estate market faces pressure from high-interest rates and financial institutions tightening their mortgage approval processes due to concerns over high household debt and rising non-performing loans, developing high-priced residential projects to meet existing purchasing power is a viable option for real estate developers. It also presents an opportunity for buyers seeking high-quality housing in prime locations. All three locations are suitable for both real estate developers and buyers, especially On Nut, which currently has limited space for residential project development due to rising land prices. This has led most developers to shift towards condominium development instead of residential homes, creating an opportunity for buyers looking for residential properties in this area,” Mr. Prabhan Sak concluded.