Plus Property reveals Condominiums in Sanam Pao-Aree-Saphan Khwai are still hot

15 āļž.āļĒ. 2016 āļ‚āđˆāļēāļ§āļŠāļēāļĢāļˆāļēāļāļžāļĨāļąāļŠāļŊ
Plus Property Company Limited, the full-service professional property and facility management agency, revealed the results of a survey of condominiums in the Sanam Pao-Aree-Saphan Khwai areas, where resale prices have increased by 50-60% during the past 5-6 years due to high residential density in the areas - whether from affluent individuals who have inherited wealth, civil servants, private sector employees, or students, limited number of new projects in the areas due to large plots of land being difficult to find, and convenient transportation offered by the main BTS Skytrain routes. These factors have contributed to real estate prices in the past 5 years increasing 5-25%. It is expected that, once the Bang Sue interchange station becomes operational, condominium prices will rise. Moreover, the rental market is still bustling, with high demand among both Thai and foreign tenants contributing to returns on investment of 5-7% for a one-bedroom, 30 square meter condominium unit.


Mr. Anukul Ratpitaksanti, Deputy Managing Director, Plus Property Company Limited, the full-service professional property and facility management agency, revealed that the Research and Development department of Plus Property has found that the Sanam Pao-Aree-Saphan Khwai areas continue to receive continual demand. A survey conducted in the first half of the year found that there was a supply of 2,184 condominium units, of which up to 91% have been sold, with an average of 12 units being sold per month. It was found that there are only 9 high-rise condominium units available from 3 projects near BTS routes, and they are being sold at an average price of 160,000 baht per square meter. Meanwhile, there are 197 low-rise condominium units, from 12 projects available, and they are being sold at an average price of 102,000 baht per square meter. This shows that these areas remain in continual high demand among consumers, especially for high rise condominiums near BTS routes. In the second half of the year, there will be only 1,371 condominium units from 2 new projects entering the market, with average opening prices at 160,000-170,000 baht per square meter. The high prices are due to limited availability of large plots of land near BTS stations, or extremely high prices for the plots. This has contributed to demand expanding for condominiums located on secondary roads or a small distance in side streets, although the condominiums can still be considered to be near BTS stations.

The reasons for condominiums in the Sanam Pao-Aree-Saphan Khwai areas receiving unwavering demand is due to their locations near convenient transportation routes, including being near Pradipat intersection, one important road that links Rama 6, Phaholyothin, Vibhavadi, Ratchadapisek, and Lad Prao. There are numerous mass transit systems available such as the BTS and MRT, as well as interchange stations, and expressways. The areas are also near schools, universities, Chatuchak market, department stores, hotels, government agencies, and offices. There are numerous conveniences that respond to the needs of people of all ages, from adolescents, to teenagers, to working professionals, and families. However, there has been limited development of residential projects in these areas due to a saturation of commercial buildings along both sides of the road. Accumulating sufficient land for a new condominium project is therefore difficult. Moreover, the areas contain many old communities, with numerous residents. When a new project development does occur, residents of these communities often quickly purchase the properties as long-term investments. Therefore premium-location projects in the areas are often sold out very quickly.

In addition, a review of the opening prices of high-rise condominiums in the Sanam Pao-Aree-Saphan Khwai areas 5-6 years ago found that average prices were 90,000-100,000 baht per square meter. At present, average resale prices have increased to 140,000-150,000 baht per square meter. Resold property will provide a return of 50-60%. The areas also have a high residential density rate of 80-90% and often attract significant renter interest. Plus Property rental property management information indicates that condominium supplies in this area are rented at an average price of 570 baht per square meter, with the rent for a 30 square meter unit at 17,000 baht per month, and average return on investment at 5-7% per year. There are both Thai and foreign renters, including Australians, Indonesians, and New Zealanders. A one-bedroom, 30 square meter unit is the most in-demand, with average rental prices of 17,000-18,000 baht per unit per month. A two-bedroom, 65 square meter unit has an average renter price of about 35,000 baht per unit per month.

“The price of land near Sanam Pao-Aree-Saphan Khwai BTS stations during the past 5 years has increased an average of 5-25% per year. Current information on land prices indicates that there are ongoing megaprojects, such as the Bang Sue interchange station. Once these projects are completed and operational, there is a very high possibility that prices in the area will increase even further. Past examples of such occurrences include land prices near the Sukhumvit BTS route, which increased significantly once the skytrain became operational. Therefore, it is certain that the capital investment needed for new project development in the area will increase, whether from land prices, building materials, or labor costs, resulting in new condominium prices in the Sanam Pao-Aree-Saphan Khwai areas likely to increase to 150,000-200,000 baht per square meter. Therefore condominiums in these areas are highly suitable for purchase as long-term investments to create increasing value in the future,” Mr. Anukul said.

  

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