Condominium prices in the Phahon Yothin area of Bangkok have risen by roughly 8 percent per year over the past four years.
Land prices, at as much as THB 1 million per sq wah, are approaching levels found in some parts of the more widely known Sukhumvit area in central of Bangkok.
These findings come from the latest research conducted by real estate firm Plus Property, which also found that the prices of new launches in the area average between THB 150,000 per sqm and THB 170,000 per sqm.
The relatively high prices can be attributed to livability and strong transport connections, according to the firm.
It also said that demand for residence has been growing by 8.4 percent per year, supported by those working in the area and locals who prefer to expand but not relocate to other parts of the city.
Anukul Ratpitaksanti, the Managing Director of Plus Property Company, said the prices for new launches in Phahon Yothin were about 8 percent more than average prices of existing projects.
He said it is believed that prices of condominiums located close to BTS stations will tend to increase in the future due to the limited quantity of land plots that are large enough for property development.
Available land plots in Phahon Yothin are generally small, and the increasing demand for condos in a location where suitable plots are becoming harder to find represents a challenge for developers.
He said: “The demand in Phahon Yothin is from people wanting to buy for their own occupation, rather than those wanting to buy for investment.”
“The large number of office buildings has given rise to real demand from office workers who prefer a condominium that is not far from work.”
He added that Phahon Yothin prices are still affordable, and that rental returns can be between 5 percent and 7 percent.