Location Definition
Prime Sukhumvit (Prime SKV) is a sub-location of the Central Business District in Bangkok. The area is part of Sukhumvit Road between Soi 1 to 63 (North side) and Soi 2 to 42 (South side). The Prime SKV area is popular with expatriates, tourists and wealthy Thais for both shopping and residence.
Supply
As at of Q1 2017, there were 16,294 condominium units in the market, accumulated from 2012 to Q1 2017. In Q1 2017, there were 1,617 new condominium units from 5 projects added into Prime SKV, according to Knight Frank Thailand Research.
Figure 1: Existing Supply and New Supply of Prime Sukhumvit Condominium, 2012-Q1 2017
Source: Knight Frank Thailand Research
Demand
In 2016, Thais made up 76% of condominium buyers in Prime SKV while foreigners made up 24%. Out of the foreign buyers, 12% were from Asia, 7% from Europe, 5% from USA and Canada, 2% from Oceania and 1% from the United Arab Emirates. Mr. Frank Khan, Executive Director and Head of Residential, Knight Frank Thailand Co., Ltd. revealed that the top buyer nationalities were from Hong Kong, USA, Singapore, Japan, China and Taiwan. It is interesting to see that Thonglor and Sukhumvit 49 were popular among the Japanese.
Out of all the buyers, 48% of condominiums in Prime SKV were bought for personal use with 36% of the sale of condominiums being bought to generate long-term rental income. We have also seen short-term investors – the speculators – make up about 16% of Prime SKV condominium sales in 2016.
The overall demand for Prime SKV condominiums between 2012 and Q1 2017 was good despite the limited new supply in the market. In Q1 2017, 14,912 new units were sold out of 16,294 units, representing a sold rate of 91.5%. There were only 1,382 units available for sale at the end of Q1 2017. In 2016, the units sold were high at 3,039 units, compared to 2015 where 1,653 units were sold. In Q1 2017, 1,887 units were sold.
Figure 2: Supply, Demand & Sold Rate of Prime Condominium in Sukhumvit, 2012-Q1 2017
Source: Knight Frank Thailand Research
Average Selling Price
The compound annual growth rate of the average selling price of Prime SKV condominiums between 2012 to 2016 was approximately 8%. The average selling price of Prime SKV condominiums at the end of Q1 2017 was THB 206,100 per square metre, increasing from THB 151,451 (approximately US$4,360) at the end of 2012. Ms. Anchalee Kasemsukthawat, Director, Residential Department, Knight Frank Thailand Co., Ltd. added that the sharp increase in the average selling price in Prime SKV is due to the scarcity of land. Prime SKV is convenient, thanks to the availability of mass transit serving the area, shopping malls and community malls.
Figure 3: Average Selling Price of Prime Sukhumvit Condominium, 2012 to Q1 2017
Source: Knight Frank Thailand Research
