Phahon Yothin and Lat Phrao have been cited as becoming the new residential centre for Bangkok.
Real estate firm Plus Property, in its latest research report, said major developers have snatched up space to launch new condominiums, pushing average pricse up to THB 150,000 per sqm.
It added that resale prices have increased by between 20 percent and 40 percent in five years due to the area’s high potential. The rental market has seen 5 percent average rates of return and high response for one-bedroom units.
Anukul Ratpitaksanti, Managing Director of Plus Property, said that launch prices of condominiums were between THB 120,000 and THB 180,000 per sqm in the areas. The first half of 2017 saw a high reception rate, at 84 percent of total outstanding supply of 4,616 units. Average absorption rate was 153.1 units per month per project.
He said the expansion of demand in this zone has resulted in an upward adjustment of selling prices of condominiums. The average selling price has risen by 5 percent from the end of 2016, to THB 150,000 per sqn.
Currently, Plus said that rooms at existing condominium projects are being resold at 10 percent mark-up prices, at an average of THB 165,000 per sqm.
Despite being plagued by heavy traffic during peak periods, the Phahon Yothin and Lat Phrao areas have been attractive due to it being a transportation hub. Chatuchak Weekend Market, Chatuchak Park are also close by.
Plus added that the most popular room type is the one-bedroom unit with areas of between 30 sqm and 40 sqm. Average rent is THB 520 per sqm per month – equating to between THB 15,000 and THB 23,000 per unit per month.
The second-most popular room type is the two-bedroom unit with areas of between 60 sqm and 70 sqm. Currently this type of room fetches an average rent of THB 542 per sqm per month, or between THB 32,000 and THB 38,000 per unit.
Occupancy rates in this zone are very high, at between 90 percent and 95 percent, Plus noted. Room owners generate 65 percent of occupancy and tenants generate 25 percent, Anukul concluded.