Sukhumvit Condominium Projects Continue Unabated

Bangkoks property market shows no signs of slowing down in terms of new construction of condominiums as projects along Sukhumvit Road, a top Skytrain route, continue to be launched. The route from the Phloenchit intersection to Sukhumvit Soi 55 or Thonglor is seeing high competition among property developers as they have launched condominium projects worth more than Bt100 billion, with more than 10,000 units.

Since last year nearly 100 projects have been launched in the area by both listed and non-listed property firms. Construction will be complete between the end of this year and 2013, according to a survey by The Nation newspaper last week. Examples are The Clover Thonglor, Le Lux & Sky Walk condominium, Ivy Thonglor, The Trendy Condominium, Noble Phloenchit, Ideo Morph 38, and Aequa.

Condominiums along this route are priced between Bt80,000 and Bt200,000 per square metre.

Luxury residences priced at over 150,000 baht ($5,000) per square metre are located between the Phloenchit intersection and the top of Sukhumvit Road between Sois 1 and 10. From Soi 10 to Soi 55, prices range between 80,000 and 150,000 baht per square metre.

One-bedroom units with a total space of 45-60 square metres are the most popular in this location.

Noble Development president Thongchai Busrapan said that after bookings for Noble Ploenchit opened from June 19-22, the company achieved presales worth Bt7.2 billion, or half of the total project value of Bt14 billion.

“Although this location has high competition, our project is freehold, which is difficult to find in this area, where most projects are for long-leasehold contracts,” he said.

Demand in this location is sufficient to absorb the high number of condominium launches, according to a survey by the Real Estate Information Centre. Since the Skytrain opened in 1999 the whole Sukhumvit area has grown quickly in terms of high-end condominiums and also serviced apartments and hotels. In addition to the condominium projects under construction there are also several five-star hotel currently being built on Sukhumvit Road.

In 2011, the total number of residential units available for sale in Bangkok was 130,282 which included single houses, semi-detached houses, townhouses, condominium units, commercial buildings and land allocated for housing. These projects were not sold out and currently have no problems but at the time of the survey the total units had not been sold and most of the residential projects were only launched shortly before the survey.

Growing demand in this area from both local and foreign buyers who live in Bangkok has driven condominium prices 10-20 per cent higher than their presale prices, depending on how close they are to Skytrain. For example, Ficus Lane on Sukhumvit 44/1, which was priced at 50,000 baht per square metre when introduced in 2005, now sells for 110,000 baht per square metre.

Condominiums on Soi Thonglor that recorded presale prices of about 100,000 baht per square metre now go for more than 120,000 baht per square metre. Condominiums on Soi Ruamrudee priced at 40,000 baht per square metre five years ago have now recently recorded sales at Bt120,000 per square metre.