Demand for residential property in the Phaya Thai and Rathathewi areas of central Bangkok is currently being driven by both business and education, alongside a serious lack of new supply.
Real estate firm Plus Property said that demand for new projects in this area of the Thai capital is between 80 percent and 90 percent – significantly higher than the average 66 percent response rate elsewhere in the city.
Anukul Ratpitaksanti, Managing Director of Plus Property, said that according to surveys, Phaya Thai and Ratchathewi areas are attractive locations in Bangkok.
Phaya Thai and Ratchathewi have seen developments of residential projects and co-working spaces have increased.
At the same time, condominium projects have been tailored to demand from owners of businesses in the Pratunam area, as well as property investors and parents of students.
He said that Bangkok is the province that possess the highest number of non-registered population. Over the last 30 years, the non-registered population has grown by about 50 percent.
In 2016 there were some 240,000 people from other provinces n Bangkok to study, but there was little in the way of new supply entering the market between 2013 and 2017.
He said that It is expected that condos in this area will become rare in the future due to limited space for development – especially for projects near mass-transit stations.
The most recent survey discovered there were only 300 units set to debut in the area during 2018.
“If no new supply opens up, units in this area are expected to be completely sold within one month.”
Consequently, the rate of return on investments is currently very attractive.
High-rise projects near BTS stations or main roads have a resale value of approximately THB 200,000 per sqm which equates to a 7 percent per annum price growth.
Resale prices have grown by about 4 percent per year, whereas rental returns were about 4.5 percent per year.
“All things considered, the price of condominium units in this area is expected to grow much more in the future”, said Anukul.