One street in Bangkok has been identified as experiencing a 150 percent growth in condo prices within just five years.
Resale prices in the same street have also increased by some 80 percent, according to new research from a real estate firm.
Plus Property Company reported what they described as continuous momentum for properties in the Thong Lo and Ekkamai zones, and attributed the phenomenon to the locations providing excellent transportation and residential needs.
The price of land has reached THB 1.5 million per square wah, resulting in substantial increases in condominium prices, Plus reported.
The prices of new high-rise condominium units in Sukhumvit 55 have exploded by 150 percent within the space of five years, while resale prices have grown by 80 percent during the same period, according to the research.
Anukul Ratpitaksanti, Managing Director of Plus Property, said the property markets in Thong Lo and Ekkamai remain attractive Thai and foreign buyers, despite a significant increase in Bangkok property prices.
The continued attraction is because of an abundance of amenities in the area, and the prospects of the area becoming a high density residential zone in the future.
All 550 units within new projects launched during 2013 are sold. New supply entering the market went towards high-end projects.
Plus said there was good demand during the first half of 2017, with a 74 percent sales ratio. The average price for high-rise condominium units in the Sukhumvit 55 area exploded by 159 percent during 2013 and the first half of 2017.
Because of limited land for development, properties that started selling in 2016 were developed as high-end projects, and examples include KHUN by yoo and The Bangkok Thong Lo.
Consequently, average prices for new projects has risen to TH 325,000 per sqm ccompared with an average price of THB 125,000 per sqm for projects launched in 2013.
For Sukhumvit Soi 36-38, high-rise condominium units now launch at THB 200,000 per sqm, meaning Bangkok property prices in this location have risen 50 percent over the past five years. This increase is not far from that experienced by low-rise projects where the sales prices of new projects rose by 65 percent.
Demand has been receptive, with 80 percent to 90 percent sales ratio. Overall, average selling prices for both high- and low-rise projects will have a tendency to grow in the future., Plus said.
In Ekkamai, average Bangkok property prices for high-rise condominiums has grown from THB 100,000 per sqm to THB 175,000 per sqm within the past five years – an increase of 75 percent. Over the period, supply of high-rise condominiums has increased as a result of the high density and high prices in Thong Lo zone pushing more project development towards Ekkamai.
During 2016 and the first half of 2017 there was a continuous increase in the ratio of two-bedroom units within new projects. The ratio two-bedroom size and larger amounted for roughly 50 percent of all units., Plus said.
This is a change from the previous tendency for one-bedroom units being the primary seller in the market, and reflects how demand from foreigners has been supporting the supply of large units in these localities.
In Thong Lo, Plus said that a massive 87 percent of tenants were foreigners, whereas the figure is 66 percent for Ekkamai.