Real estate firm Plus Property has identified Phayathai and certain parts of Phaholyothin as the next big hotspot for the Bangkok residential property market.
The company noted how the area in central Bangkok looks set to follow in the footsteps of the Phloenchit-Sukhumvit zone, with unit prices showing significant annual increases. Projects completed less than four years ago now command resale prices almost 80 percent higher than their original valuations, averaging THB150,000 per sqm.
According to Plus, new projects are available for around THB200,000 per sqm, and more developers are expected to jump into the fray with land still available.
Poomipak Julmanichoti, Managing Director of Plus Property, noted how Sukhumvit remained Bangkok’s most valuable and reputable road. One of the country’s major economic avenues, Sukhumvit is punctuated with constant developments including residential projects, office towers, shopping malls, tourist attractions, public parks, hospitals and top schools.
With the BTS skytrain operating on top, it is no surprise that Sukhumvit has become Bangkok’s most well-known road, and a highly popular area for residential developments, particularly condominiums.
While plots in Silom and Yaowarat have attained higher valuations, Sukhumvit has always been the leading site for condominium developments, he noted.
Poomipak said: “Today, the area that generates the most interest with regard to property is Phloenchit-Sukhumvit. However, this may not necessarily be the case in the future, as land availability is becoming very limited.
“Our survey revealed that Phayathai-Phaholyothin is a burgeoning new hotspot that is enjoying growing popularity.
“Over the past decade, the area averaged one new condominium project launch each year along the main road, with many more projects established on side roads. Each of these main-road projects quickly sold out, and sell-on prices consistently showed huge improvements year after year. Certain projects, despite being completed less than four years ago, now show sell-on prices 80 percent higher than their original launch prices.”
Between 2008 and 2015, the Phayathai-Phaholyothin zone saw 12 new project launches, with one more due for completion in 2016. These projects comprise 4,048 units combined, all of which have sold.
Average prices currently stand at THB150,000 per sqm, and new projects are expected to hit the THB200,000 price mark.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
