With land around the Chao Phraya River limited and a new supply of luxury condos being built, luxury residential prices in this part of Bangkok have risen by 80 per cent on average from 2014-18, according to JLL Thailand. Prices for condos by the river are now around THB 250,000-300,000 per square metre.
There are regulations in place that create challenges for developers wanting to build projects nearby. According to the Bangkok Metropolitan Regulation, any new building within 45 metres of a river bank cannot be taller than 16 metres.
“To develop a riverside condo project, plots should be large as a setback from the river is required. There are rarely large riverfront plots available for new property development on Charoen Krung Road,” says JLL Managing Director Suphin Mechuchep to the Bangkok Post.
According to JLL, the sales rate of condo projects under construction by the Chao Phraya River was 80 per cent on average. Completed projects boasted a sales rate of 95 per cent with buyers purchasing condos for both investment purposes and as a residence.
At the moment, the average price of luxury condos by the river is 15 per cent higher than condos in Bangkok’s central business district (CBD). Many of the projects close to the river are hotel-branded residences which add to their appeal. Mandarin Oriental at Iconsiam and a new Banyan Tree condo on Charoen Nakhon Road and Four Seasons on Charoen Krung Road all have selling prices of over THB300,000.
Menam Residences is another condo development on Charoen Krung Road. The project has 26 units available for sale with these expected to be purchased by the end of the year. So far the developer has sold 90 per cent of the units to Thais with foreign buyers acquiring the rest.
“Foreign buyers’ behaviour in the high-end segment has changed since four years ago. They are shifting to riverside projects from the Sukhumvit area,” says Daecha Tangsin, Menam Residences Co. Chief Executive.
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