Mr. Phanom Kanjanathiemthao, Managing Director of Knight Frank Thailand, said that the development of residential condominiums in the outer Sukhumvit areas of Bearing and Samrong has the potential to expand and grow, to meet the needs of people working in both Bangkok and Samutprakarn. The area will benefit from the following:
- The advantage of the location and the cost of land – specifically, the location benefits from the extension of the Green Line of the BTS, which is currently under construction and will extend to Praeksa Road of Samutprakarn. Samrong station is currently open and operating. The Green Line connects the central business districts of Bangkok, namely, Sukhumvit, Ploenchit and Silom, and the Siam commercial and retail area. It allows workers access to downtown workplaces as well as the shopping district of Thonglor and Siam quickly and easily, in just 16 to 30 minutes from Samrong. Moreover, the Samrong station is connected to the Yellow Line of Ladprao – Bangkapi – Srinakarin – Theparak – Bangkok – Samrong, which runs through an important residential area of Bangkok.
The important thing for development is to leverage the relatively low cost of land in this area. Prices are still reasonable, and not too expensive. Thus, the prices of condos in the area will remain affordable to many buyers.
- The district is already developed, with complete utilities and public services. Many commercial projects have been developed; these include Samrong Market, Imperial Samrong Shopping Center and BITEC Exhibition Centre. Projects currently under construction include Bangkok Mall, which is a massive shopping mall by The Mall Group on over 100 rai of land, and the Bhiraj Tower office building.
- The area boasts close proximity to workplaces such as Poochaosamingprai Road, Theparak Road and Samutprakarn – all important industrial areas. Samrong has become the central hub connecting areas between the commercial and industrial sectors, which makes it suitable as a residential area. From the research of Knight Frank Thailand, as of the first quarter of this year, the supply of condominiums on Sukhumvit Road, from the Bangna intersection to Samutprakran, is up to 27,916 units. The total number of condos sold has been 18,956 units, representing a sales rate of 67.9 per cent. This marks an increase from 2015, which was 62.8 per cent. It was also found that the rate of condominium sales in this area is around 3,500 to 4,500 units per year.
The expansion of the condominium market in this area (Bangna – Samutprakarn) saw the volume of the supply increase significantly during 2014 and 2015 (with the new supply increasing to 6,642 units and 7,292 units, respectively). In 2013, construction of the Green Line extension from Bearing to Samutprakarn began. In 2016, the new supply was merely 3,836 units, and in the first quarter of 2017, the new supply was only 972 units, in line with overall market conditions. As for the demand, the rate of purchase of units in this area was around 3,500 to 4,500 units per year. When assessing the overall market, it is found that the market remains in good shape. The supply adaptation is in line with market demand.
Graph 1
Supply, Demand and Rate of Sales for Condominiums in Outer Sukhumvit, from Bangna Intersection to Samutprakarn, 2009-2016
Source: Knight Frank Thailand
In terms of sales prices for condominiums in outer Sukhumvit, presently, the average rate is 78,157 baht per square metre. The average accumulated growth rate for prices in outer Sukhumvit is 5.6 per cent per year, with the highest price increase at an average of up to 7 per cent per year. This reflects the progress of construction on the Green Line transit system extension. It is expected that prices of condominiums in the area will increase again from 2018 to 2020 once the Green Line is complete and operating in 2020.
Graph 2
Average Prices for Condominiums in Outer Sukhumvit, from Bangna Intersection to Samutprakarn, 2009-2016
Source: Knight Frank Thailand
The Metropolis Samrong Interchange Building B project is a 30-storey with 552 units. Each unit is fully furnished. Unit types range from studios to 2-bedrooms. Shops are located within the complex, catering to the residents. Other amenities include an infinity saltwater swimming pool, a children’s pool, a fitness room, a golfing room, and tranquil gardens. The project is situated next to the Samrong BTS station. Prices start at 2.5 million baht. Metropolis Samrong Interchange comprises three residential buildings; Building A and Building C launched their sales efforts two years ago. Both were well received by customers. Currently, the sales phases have ended amidst robust customer interest, thanks to the use of good quality materials and furnishings as well as the choice location next to the BTS station.
