For those keeping an eye on Bangkok’s real estate market for a luxury home Sathon, the increasing prices are a little worrying.
Unfortunately, prices in the real estate market are expected to continue going up in the capital’s Central Business District (CBD), in spite of the high pricing currently dominating the market.
The CBD’s average land prices rose by 6.4% last year, with the highest price in the district having been recorded back in 2015, at Bt1.91M/wah2.
Associate Director SurachetKongcheep of Colliers International Thailand, said that the prices were going up to around Bt2M/wah2, due to the fact that available land area around Bangkok’s BTS route was getting scarcer.
He says that landlords around the main road along the skytrain routes offer prices clocking in at, at least, Bt2M/wah2 since 2016, with record pricing at Phloenchit Road, at Bt2.5M/wah2.
However, despite, or, perhaps, because of the high prices, there were no recorded sales for over Bt2M/wah2, excluding plots with special road entrances, with the last recorded deal in that price range having transpired back in 2015, at Bt1.91M/wah2.
The sale was for a Chidlom Road plot, located opposing Central Chidlom, which was purchased by the SET-listed SC Asset Corporation PLC., which then launched a luxury condo project in the plot last year, priced at an average of Bt350,000/m2.
The high priced locations have not deterred some developers, such as SC Asset, Ananda Development and Sansiri, from launching luxury condo projects, which is seen by Colliers as a sign that their existing supply has been used already.
The limited demand for condo units priced higher than Bt300,000/m2 meant that these new developments have had little news about them.
According to Agency for Real Estate Affairs (AREA), a property consultancy, land prices in the Greater Bangkok region are slated to rise by an average of 4% in 2017, same as with 2016, which is up from 2015’s 3.2% and 2014’s 3.5%.
AREA says that the highest increases were in the vicinity of the Sukhumvit-Asok Road areas, at 27%, followed by the surrounding areas of The Mall ThaPhra in Thon Buri, at an increase of 25%.
AREA also expects that prices for luxury home Sathon will increase, as the area around Rama IV Road, particularly in the vicinity of the Sathon to Sam Yan intersection, will become prime development land, with at least two large projects in the area.