Mr. Phanom Kanjanthiangta, Managing Director of Knight Frank Thailand Co., Ltd. stated that the development of residential condominiums in the Sukhumvit area, particularly in Bearing, has significant potential for expansion and growth, catering to the needs of urban workers and those in the Samut Prakan area. The region stands to benefit from:

  1. Location advantages: The area benefits from the Green Line BTS, which connects to major business centers in Sukhumvit, Phloenchit, Silom, and the shopping district of Siam. This allows city workers to access key employment and shopping areas in Thonglor and Siam conveniently within 15-25 minutes from Bearing station without needing to change lines. Additionally, the extension connecting to Samut Prakan and Bang Pu will also provide convenience for those working in the industrial area of Bang Pu.
  2. Land costs: An important factor in project development is the land cost in this area, which remains affordable. This keeps the selling prices of condos in the area reasonable, with units priced between 1.5 million to 3.5 million baht. In contrast, new condos along Sukhumvit from Bangna to Asoke near BTS stations are no longer available at prices between 1.5 million to 2.5 million baht. The lower unit prices result in monthly bank payments of around 10,000 baht, meeting the needs of office workers in the city center.
  3. A developed area: The region is well-equipped with public utilities and services, featuring several commercial development projects such as the BITEC exhibition center, the Pirath Tower office project, and the Bangkok Mall, a large mixed-use shopping center developed by The Mall Group. This project will be located at the intersection of Bangna-Trad and Sukhumvit roads on over 100 rai of land, and will include a shopping center, hotel, and serviced apartments, with construction expected to begin in 2018.
  4. Good investment returns: With low unit prices and rental yields ranging from 5.5% to 5%, depending on the project, low-rise condominiums with one-bedroom units of 28-30 square meters are priced around 2-2.3 million baht, with rental rates of about 10,000-12,000 baht per month. For high-rise condominiums of the same size, prices are around 2.5-2.8 million baht, with rental rates of approximately 13,000-15,000 baht, attracting both Thai and foreign tenants, particularly from China and Korea, who work in factories in Samut Prakan. Additionally, the Bearing area has international schools such as St. Andrew's International School and Bangkok Patana School.

 

Graph 1

Source: Knight Frank Thailand

          According to a survey by Knight Frank Thailand, the supply of condominiums around Bangna-Bearing-Samrong stations from 2012 to the first half of 2017 totaled 12,417 units, with approximately 3,343 units currently available for sale, reflecting a sales rate of 73%. This has shown continuous growth since 2015, which saw the highest influx of new supply at around 4,300 units. The absorption rate in this location remains consistent, while condominiums near Bearing station had a sales rate of 83% by the end of Q2 2017, with a total supply of 6,430 units and only 1,160 units left for sale, indicating the highest sales rate in 5 years. This demonstrates that the Bearing area continues to be popular, with sales rates consistently above 70% over the past 5 years.

 

Graph 2

Source: Knight Frank Thailand

          The survey found that most condominiums around the Bangna-Bearing-Samrong stations are low-rise buildings, accounting for 63% or 7,861 units, while high-rise buildings comprise about 4,556 units or 37%. However, focusing solely on Bearing station, only 8% or 545 units are high-rise from projects like KnightBridge and The Gallery Bearing, with these high-rise condos having a 99% sales rate, leaving only a few units available since they have been on sale for three to four years. The survey indicates that most condos in this area are located in Soi Lasalle or Sukhumvit 105 and along smaller streets in Soi Bearing 107, limiting the possibility of high-rise buildings. The supply of high-rise condos in this area is limited, while demand from tenants and buyers remains high, as high-rise condos offer better views and there are few tall buildings obstructing the sight in this area. Additionally, they are easier to rent out due to potentially less comprehensive common areas and amenities compared to high-rise buildings.

Graph 3

Source: Knight Frank Thailand

          Currently, the average selling price of condominiums around the Bangna-Bearing-Samrong stations in low-rise buildings is 70,000 baht per square meter. However, for high-rise buildings in the same area, the price is approximately 28% higher, at 90,000 baht per square meter. Meanwhile, high-rise condos along Sukhumvit road can reach prices as high as 110,000 baht per square meter, which is 28% more than high-rise condos in the soi, and no low-rise condos are found along Sukhumvit road.

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