Which Condo Locations Have the Highest Price Increases? By TerraByte

            As the condo market situation raises concerns about whether it has reached the point of Over Supply, along with stricter government measures regarding lending and the control of LTV, many developers are feeling the impact. At the beginning of this year, the team from TerraBKK Research observed that developers are responding by launching fierce promotions to boost bookings before the LTV measures take effect in April.

            Despite the heated situation, it has not affected the prices of newly launched condos. The team from TerraBKK Research analyzed data from TerraByte and found that in 2018, the average price of newly launched condominiums increased by 10% compared to 2017, with the top five locations experiencing the highest price increases being:

            1. On Nut-Srinakarin-Bangna New projects launched in 2018 saw prices increase by as much as 52% from the previous year, primarily because most of the new projects are located near BTS stations, unlike in 2017 where many were situated deep in alleys. This resulted in prices jumping to 100,000-120,000 baht per square meter.

            2. Chatuchak-Prachachuen-Rattanathibet New projects launched in 2018 saw condo prices increase by 33% from the previous year, particularly in the Sena Nikhom-Phaholyothin area, which is an extension of the Green Line (Mo Chit-Khukhot). Developers are not only competing to launch projects but also to raise prices, with some projects reaching 150,000 baht per square meter.

            3. Phaya Thai-Ari-Saphan Khwai New projects launched in 2018 experienced a 26% price increase from the previous year. This year, Phaya Thai seems to be bustling again with three new projects totaling over 2,400 units, including projects in the Ari area, which is considered a rare item for that neighborhood, resulting in prices around 150,000-230,000 baht per square meter.

            4. Sukhumvit-Chidlom-Thonglor-Ekkamai New projects launched in 2018 saw condo prices increase by 20% from the previous year. The hottest area on Sukhumvit must be “Thonglor-Ekkamai,” where 12 new condo projects were launched in 2018, totaling over 4,400 units.

            5. Silom-Sathorn New projects launched in 2018 saw condo prices increase by 16% from the previous year. The Silom-Sathorn area is known for having fewer new condo launches each year, but prices continue to rise, making it no surprise that it consistently ranks in any list.

            After reviewing 2018, let’s update on Q1/2019 to see which locations have the highest growth in new project prices. It should be noted that the situation in Q1/2019 saw a supply contraction of over 45% (QoQ), but there are still some areas where new projects have significantly increased prices due to the benefits of the extended BTS line and other factors. According to data from TerraByte, the two areas with price increases for new condos are:

            1. Rama 3-Yannawa New condo prices in Q1/2019 increased by 31% from the previous year, with the latest project, Altitude Symphony, launching at a starting price of 4,900,000 baht (approximately 160,000-170,000 baht per square meter).

            2. Samut Prakan This area has truly benefited from the recently opened extension of the Green Line (Bearing-Samut Prakan), as well as the commencement of construction for the Yellow Line. In 2019, we will see more changes in this area, as in Q1/2019, the prices of newly launched condos increased by 19% from the previous year. Additionally, the locations of condos in this area, which used to be concentrated in the Lasalle-Bearing area, are now starting to expand to Samrong-Poo Chao, particularly near BTS stations.

            What do you think about the ranking of condo price growth? Many anticipate that the condo market will slow down this year, and TerraBKK predicts that this will affect the number of new project launches, which are expected to decrease this year, along with ongoing promotions for projects that remain in stock. However, the prices of new projects may not decrease accordingly due to the rising and increasingly scarce land prices in urban areas, which is a key factor driving up condo prices in certain zones.