Nexus Property Marketing has revealed that land prices in the Asoke to Thonglor area have increased over the past 7 years. Most of the land transactions in this area have been developed into residential projects, including condominiums, rental housing such as serviced apartments, and hotels. This location is one of the most modern lifestyle hubs in Bangkok, which has led to a corresponding rise in residential property prices.

Ms. Nalinrat Charoensupong, Managing Director of Nexus Property Marketing Co., Ltd., discussed the overall picture and price trends for land in the Asoke to Thonglor area, stating that land prices have been continuously rising, with an average growth rate of 19% per year over the past 7 years. The average price has increased from 350,000 THB per square wah to 1.01 million THB per square wah, and in the next two years, prices are expected to rise by at least 10% per year.

* Source: Nexus Property Marketing, October 2017

Luxury Condominium Market in Asoke to Ekkamai

Supply

From 2012 to the third quarter of 2017, developers have remained confident in the growth of the condominium market in the Asoke to Ekkamai area, with a total new supply of 14,332 units from 48 projects. The average growth rate of condominiums over the past 6 years has been 67% per year. For the first to third quarters of 2017, new supply from developers accounted for 29% of the total supply, with 4,281 units from 17 projects, indicating that developers still have confidence in this market.

* Source: Nexus Property Marketing, October 2017

When comparing the proportion of project supply in the Asoke to Ekkamai area by type, out of the total supply of 14,332 units, high-end projects accounted for the largest share at 55% or 7,919 units, followed by luxury projects with 4,089 units and super-luxury projects with 2,324 units.

* Source: Nexus Property Marketing, October 2017

In terms of the proportion of developers in the luxury market, out of the 48 projects launched from 2012 to the third quarter of 2017, major developers were interested in developing 9,332 units, accounting for 65% of the market, while smaller developers focused on 5,000 units, representing 35%. This shows that major developers continue to have confidence in developing luxury products in this area.

* Source: Nexus Property Marketing, October 2017

For upcoming projects in the near future, there are a total of 8 projects in the Asoke – Ekkamai area, most of which are located in Ekkamai and Thonglor, developed by major developers such as Noble Development, Sansiri, Singha Estate, MQDC, and Ananda Development.

Demand

Regarding the demand for condominiums in the Asoke – Ekkamai area from 2012 to the third quarter of 2017, total sales reached 11,218 units, accounting for 75% of total supply. The high-end market accounted for 77% of sales, the luxury market 74%, and the super-luxury market also 74%, depending on the supply of each market segment.

* Source: Nexus Property Marketing, October 2017

Prices

The prices of luxury condominiums have continuously risen from 2012 to the third quarter of 2017, increasing from an average of 158,800 THB per square meter to 222,944 THB per square meter, with an average growth rate of 9% per year over the past 6 years. The overall average price trend has been positive, except for the period from 2013 to 2014 when developers focused more on high-end high-rise projects, leading to a slight price adjustment.

* Source: Nexus Property Marketing, October 2017

Conclusion

“The Asoke to Ekkamai area is a location with potential for continuous luxury project development by major developers. However, limitations in land acquisition and investment capital have led developers to trend towards projects with unique features, such as high-end high-rise and luxury low-rise projects, or collaborations with foreign companies for financial and technological purposes. In terms of pricing, when comparing land prices with selling prices per square meter of projects in the luxury market, the increase in land prices in this area is clearly due to limited land availability, while the selling prices of condominiums per square meter have continuously risen in line with land prices. However, from 2016 to 2017, the selling prices remained stable as developers shifted their focus to developing low-rise and high-end high-rise projects. It can be seen that condominium prices have increased at an average rate of 9% per year, while land prices have risen by 19% per year. Regarding product quality, due to high competition in the luxury market and the continuous launch of new projects, the quality of products has improved, with distinct features varying by project, which benefits buyers as well,” Ms. Nalinrat stated.

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