Condominium prices in Sukhumvit, from the low-numbered sois to Ekamai, will likely remain high. Most recently, analysis by the Knight Frank Thailand Research found that the average selling price per square metre for condominiums from Sukhumvit Sois 1 to 63 stood at, as of the end of 2017, 181,800 baht. This is an increase from the previous year by up to 15%; prices have the tendency to rise steadily given the cost of land plots, which are limited, particularly along the main road. As a result, many real estate operators have turned their attention to the outer Sukhumvit area, such as from Onnut to Samrong, given its prime location, initial cost of land, and supporting infrastructure and public utilities. In terms of location, Onnut-Bearing-Samrong boasts seamless connectivity via the BTS transit system to the inner city areas of Sukhumvit, Ploenchit and Silom. As such, real estate operators have invested in a range of projects in the area. At present, mixed-use projects in the area include:
- Whizdom 101 – Thailand’s first lifestyle complex encompasses residences, an office building with a co-working space, retail spaces and a large public park on an area spanning over 350,000 sq.m. It is located at the front of Sukhumvit 101 and developed by Magnolia Quality Development Corporation Co., Ltd. Whizdom 101 is ready to unveil its first phase in October 2018 with a 40,000 sq.m. Innovation Lifestyle Complex.
- Bangkok Mall – This mega project from The Mall Group and City Realty Co., Ltd. sits on 100 rai of land on Bangna-Trad, across the road from BITEC Bangna. It contains a shopping complex, condominiums, serviced apartments and office buildings for rent – all under the “City within the City” concept of 650,000 sq.m. It is expected to open in 2022.
In addition, there are also developments that recently opened such as M Tower, a 21-storey office and retail structure with a total area of over 14,500 sq.m. on Sukhumvit 62 near the Bang Chak BTS station; as well as Bhiraj Convention Centre, located at the BITEC Bangna Convention Centre. The on-going development of the mass transit rail system in Onnut-Bearing-Samrong continues to be an important factor, ever transforming the area into a more vibrant location, whether it is the Dark Green Line or the extension of Bearing – Samut Prakan that is connected to the Yellow Line of Huamark – Samrong at Samrong Station. Both lines are expected to be completed in 2018 and 2021, respectively (source: Mass Rapid Transit Authority of Thailand)
Graph 1: Cumulative Supply in Subject Area, 2009 to 2017
Cumulative supply increased from 57,622 units in 2016 to 62,361 units in 2017, an average growth rate of 8.2% per year.
Source : Knight Frank Thailand Research
The condominium market for Onnut-Bearing-Samrong, which covers an area from Sukhumvit Soi 77 to Theparak Road and Sukhumvit Soi 50 to Phuchao Saming Prai Road, as of the end of the 4th Quarter 2017, had a total cumulative supply of approximately 62,361 units. In terms of demand, condominiums for sale in the area have been very well received by buyers in projects launched from 2010 to 2018, with an average sales rate of around 96% while projects launched in 2009 are sold out.
Focusing on newly launched projects in 2017, the average sales rate is around 65%, a slight decrease from the previous year; this corresponds to the amount of supply entering the market, which is reduced as well. At any rate, analysis by Knight Frank Thailand Research found that high-rise condominiums remain popular among condominium buyers in this area; sales of all such projects launched in 2017 are more than 60%, with some projects enjoying a 90% sales rate.
Graph 2 : Supply by Grade
Sales price (Baht/Sq.m.)
Grade A ≥ 95,000 Grade B 55,000 – 95,000 Grade C < 55,000
Source : Knight Frank Thailand Research
Graph 3 : Accumulated Data in Subject Area, 2009 to 2017
Cumulative demand increased from 52,789 units in 2016 to 55,845 units in 2017, an average growth rate of 5.8% per year
Source : Knight Frank Thailand Research
When analysing the sales price in depth by area, it was discovered that, when compared to Ekamai, the average selling prices per sq.m. in Onnut, Bangna and Bearing-Samrong, are significantly lower. Currently, Ekamai commands an average sales price of around 154,500 baht per sq.m. while Onnut, Bangna and Bearing-Samrong have an average sales price per sq.m. of around 105,600 baht, 86,600 baht and 63,500 baht, respectively. Clearly, prices in Onnut, Bangna and Bearing-Samrong are lower than in Ekamai, especially when looking at the figures in percentage terms: 32%, 44% and 59%, respectively.
This area is thus one that warrants attention, both in terms of the significant increases in condominium supply and demand in the near future, reinforced by many positive factors, especially the ease and convenient of the transit system as well as the mixed-use developments in the area. Sales prices of condominiums in the area have the tendency to increase steadily but will remain moderate, compared to prices in nearby areas such as Thonglor and Ekamai. Interesting options abound for investor-operators, buyers who are looking for a city condominium as their own residence, and investors who intend to generate rental income from the units.
Graph 4 : Average Selling Price/sq.m. of Supply in Subject Area
Source : Knight Frank Thailand Research
Graph 5 : Comparison of Cumulative Supply from 2009 to 2017, Present Sales and Average Selling Price/sq.m. of Supply in Subject Area
Source : Knight Frank Thailand Research
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