Offices, Sky Train boost the area’s appeal for homebuyers, investors
Sixteen city-condominium projects, valued at about Bt16 billion, are expected to be launched in the vicinity of the Victory Monument. Most of these projects have sold 30 per cent to 100 per cent within three to six months of opening for booking.
According to a survey conducted by The Nation, these projects are targeted toward the middle- to upperincome segment of the market with prices starting between Bt48,500 per square metre and Bt100,000 per square metre.
The main locations include Phahonyothin Road from Soi 2 till Soi 18, Phayathai Road, Sri Ayudhya Road, Ratchapralop Road and Petchaburi Road.
Resale prices for city condominiums in this area have risen between 10 per cent and 20 per cent this year compared to last year.
Harrison chief executive Alan Lin said that when developers raise prices 10 per cent to 15 per cent of new residential projects to adjust for higher raw- material costs, resale prices of existing residential units will also rise 10 per cent to 20 per cent, depending on the location.
City condominiums located close to the inner Central Business District, in areas such as the Victory Monument, will also witness a significant rise from an average of Bt60,000 per square metre to about Bt80,000 per square metre, Lin said.
According to research conducted by Harrison, a local property consultant, the demand for residential projects around the Victory Monument has risen because this area has many offices and is located close to the mass-transit system.
However, there is limited availability of land for residential projects for sale around the Victory Monument. This is because most land owners have used the land to develop serviced apartments.
The research said population in the Ratchathivi district stood at 97,416 while the residential register recorded 33,769 units, as of January.
Other locations close to the Ratchathivi district, such as the Phayathai district, the Pathumwan district, the Hua Kwan district and Dusit district recorded a population of 332,538 while the residential register showed 125,647 units.
After analysing these figures, Harrison believes that demand for new residential projects in this location will continue to grow, especially for residential units priced between Bt50,000 per square metre and Bt80,000 per square metre.
Last year, the number of completed condominiums in Bangkok stood at 126,071 units, a rise of 21 per cent from 2006’s figures. Of these, 17 per cent were located at Ratchadapisek while another 17 per cent were at Rama III Road. Another 15 per cent were located at Sukhumvit Road, between Soi 70 and Soi 107 and 14 per cent between Soi 1 and Soi 55. A further 9 per cent of the total condominiums were located inside the Central Business District in areas such as Silom, Sathorn, Wireless Road and Pleon Chit. The Thonburi district also had a figure of 9 per cent while Phahonyothin Road had 7 per cent of the total. Phayathai district had 4 per cent of the completed units and the rest of the 8 per cent were located in other areas on the list.
The research also shows that 67,036 city-condominium units are under construction.
It revealed that one- bedroom apartments with a utilisation space between 45 square metres and 55 square metres are the most popular type of city condominiums.
City Resort Development managing director Chaivai Poonlapmongkol said the company believes demand for residential projects in areas close to the Victory Monument and the Sky Train has seen strong growth following the rise in cost of living.
“Buying a property located close to the mass-transit system reduces the transportation costs for homebuyers. People buying properties with an investment focus can also expect good rental income because this location has a number of offices and schools,” he said.
Chaivai said investors can expect a return of 7 per cent to 10 per cent.
