Those staying in a modern hotel in Sukhumvit may be seeing more development for the local region in the future. According to Knight Frank, condos in the outskirts of Bangkok possess a lot of potential for development, with the demand for them increasing in spite of limited available land for construction and increasing prices.
According to the company, the number of condominiums located in the outer Sukhumvit Road have had an incrementing trend for three years now, with an average increase ranging around 4,000 to 5,000 units per year. Knight Frank also stated that, last year, 4,832 units were constructed, increasing the supply.
Phanom Kanjanathiemthao, managing director for the company, has pointed out that, this year, the condominium projects went from hindering sales to being the reason for the launching of numerous projects by the company in the early half of 2017. Mr. Phanom also pointed out that the projects in the border regions of Bangkok possessed notable sale prospects, and that their prices might be following an upward trend.
Strangely, the supply of units in has recently declined in the past three years, as the more recent development projects that have been launched possessed buildings with a smaller ratio of units.
According to research conducted by the company, grade-A condominiums compromise 22 percent of the units, with Grade-B compromising 41 percent; the notable majority of condo units in the region, followed then by Grade-C, making up 37 percent. Worth pointing out is the large increase of supply by grade-A units last 2015, which increased to its current number from 15 percent.
Knight Frank has stated that this trend is a reflection of the inherent potential of the fringe areas around Bangkok to grow, at least, in the sense that the sales pricing in the area rises. The company believes that since the start of the previous year, the incrementing number of grade-A condos in the borders of Sukhumvit are well worth observing.
Condo prices in the region averaged about Bt 101,493/m2. This marks a notable increase in pricing compared to past years. For example, a unit that is priced at Bt 85,000/m2, is of good value, at least in comparison to the rest of the market.
Knight Frank has stated that prices may follow the averages in the region. If things go the way the company predicts, it won’t be long before the average modern hotel in Sukhumvit is surrounded by high-quality condominium units.