Condominium sales in the Bearing area of Bangkok are at a five-year high, according to new research from a real estate firm.
Knight Frank Thailand also noted the area has potential for future expansion.
Phanom Kanjanathiemthao, Managing Director of the real estate agency, said the development of condominiums in the outer Sukhumvit area of Bearing fulfills the needs of professionals working in the city and those working in Samut Prakarn.
Advantages of the location include proximity to the BTS network which connects to the important business and commercial centres of Sukhumvit, Ploenchit, Silom and Siam.
The cost of land is still relatively affordable, he noted, which makes Bearing condo sales prices not too high. Prices in the area are around THB 1.5 million to TH 3.5 million per unit, he noted, compared with new condos located from Bang Na to Asoke around mass-transit station which would be impossible to find at these price levels.
Rental yields are between 5.5 percent to 6.5 percent, depending on the project, with one-bedroom units renting for between THB 10,000 to THB 12,000 per month. Tenants are Thai and foreigners.
Knight Frank market research focusing on condominiums in the Bang Na-Bearing-Samrong areas found there was an accumulated supply from 2012 to the first half of 2017 of 12,417 units. There are currently 3,343 units available for sale, which reflects a sales rate of 73 percent. There has been steady growth since 2015, which marked the year of most new supply – at about 4,300 units.
“We believe the absorption rate in this area will continue,” Knight Frank said.
For condos around Bearing station at the end of the 2nd quarter of 2017, there was a high sales rate of up to 83 percent with just 1,160 units available for sale.
The research also found average Bearing condo sales prices of low-rise developments in sois in the Bangna-Bearing-Samrong area was around THB 70,000 per sqm. For high-rise units in the sois, the price is roughly 28 percent higher at THB 90,000 baht per sqm.
The price of high-rise condominiums on Sukhumvit commanded the highest price of THb 110,000 per sqm, some 28 percent higher than high-rise condominiums in the sois.
There are no low-rise condominiums on Sukhumvit Road, the real estate firm noted.