Central Bangkok rental growth up 2.4%

Year-on-year property rental growth for prime Bangkok residences rose 2.4 percent year-on-year.

Month-on-month figures indicated a 0.8 percent increase.

Capital values were unchanged quarter-on-quarter, meaning market yields for buy-to-let investors saw a slight expansion.

In its Asia Pacific Q1 Property Digest report, real estate firm JLL revealed that new prime and luxury condos launched in the Thai capital during the first three months of 2018 achieved pre-sales rates of 68 percent.

Most of those new projects were located in what it described as the “Central East” submarket due to the lack of available freehold development sites elsewhere in Bangkok.

JLL reported that late last year, SC Asset acquired a 3,500 sqm site on Langsuan Road for the equivalent of THB 775,000 per sqm, a new record in terms of price per sqm.

The developer is expected to announce its plans for the site later in 2018, but the ultra-luxury development could easily be the first property in Bangkok to sell at prices of more than THB 1 million per sqm.

JLL also predicted that more than 7,200 new prime grade condo units are set to be launched in Bangkok within the next 12 months.

It said that a combined pre-sales rate of 85 percent demonstrates that demand remains strong for prime units in Bangkok’s central business area.

The firm also said it expects to see more joint venture condo projects from overseas developers from Japan, Singapore and China, partnering with local developers.

It also confirmed that demand for prime residential condos in Bangkok will remain healthy over the course of the next 12 months.

Domestic demand, it said, is expected to remain robust due to the scarcity of freehold land plots.

It also said that foreign buyers remain an important source of demand for prime grade condos in central Bangkok.