For experienced Thailand property market watchers this news will come as no surprise.
Since 2008 and until 2019, appraised land prices in the Sathorn area of central Bangkok will have increased by as much as 78 percent. In nearby Silom the increase will be 53 percent over the same time.
These figures come from real estate firm Plus Property and are published in its latest survey of the Silom and Sathon area.
The survey revealed the most recent appraised price for land in the area was found to be THB 1.45 million per sq wa, with condominiums commanding prices of between THB 200,000 per sqm and THB 300,000 per sqm.
It said Thai and foreign buyers have been attracted to the area, with the rental market generating a 5 percent annual return on investment, and average resale prices increasing by 7 percent per year during the past five years.
Anukul Ratpitaksanti, Managing Director of Plus Property Company, said the Silom and Sathon area have been identified as a location with high potential.
Despite limited land for development, the area is experiencing “interesting” growth in condominiums, with a supply of 6,786 units available during the first half of 2017, he said.
In terms of property purchased as investments, it was found the rental market continued to attract significant interest due to condominiums in Silom and Sathon generating high returns on investment for rental properties.
According to the real estate agency, a condominium unit priced at THB 6.5 million can be rented for THB 30,000 per month, providing an average 5 percent annual return on investment.
The current average monthly rental rates for Silom and Sathon condominiums located near mass-transit lines is between THB 700 per sqm and THB 1,000 per sqm.
For resale property purchases, it was found that during the past five years a one-bedroom unit commanded a resale price of about THB 210,000 per sqm, while a two-bedroom unit had a resale price of about THB 200,000 per sqm.
Resale prices of projects have increased about 7 percent per year since opening for sales, due in part to continued increases in land prices.
“The forecasted demand for real estate in this area is expected to increase due to buyers’ desire to avoid tiring commutes and travel costs, as well as the proximity and easy access to nearby lifestyle venues, department stores and world-class restaurants,” Anukul concluded.