The Ladprao area of Bangkok is one that deserves serious consideration for anyone looking at buying property in Thailand.
Located in the city fringes to the north of the city, it enjoys easy access to and from the well-known areas of Silom, Sathorn, Sukhumvit and Rama 4 road. Ladprao also enjoys excellent public transport links through the BTS Skytrain and MRT underground networks.
Recent research from Knight Frank showed the condominium market in the area enjoys bright prospects. The number of transacted units has increased as a result of the construction of new office buildings. The many schools and universities in the area is another attractive feature for property investors seeking a strong pool of potential tenants.
High-rise condominium buildings are already an attractive choice for buyers since the new Bangkok City planning rules will limit high-rise construction. Expect to see reduced supply of high-rise building as a result.
Demand in the area also enjoys bright prospects, with the average take-up rates not less than 78 percent. Buyers prefer one-bedroom units whether they are in high- or low-rise buildings, followed by the studios.
Demand for two-bedroom condominiums is also strong but generally the sizes of these are between 50 sqm and 60 sqm. Over the past few years, Thai developers have resized units to be smaller and more affordable. The smallest unit sizes are studios which offer 24 sq m.
Meanwhile, selling prices increased in the range of between four and eight percent across the board during 2011 – the last year that full data was available – and this was after an up to 12 percent decrease was seen in Grade B condominiums during the previous year. Unit prices in the same project vary depending on unit location and views.
The majority of one-bedroom units are sold at below THB3 million (S$123,781), with the smaller one-bedroom unit of less than 30 sq m selling below THB2 million (S$82,521). Affordable two-bedroom units are transacted in the THB3 million to THB5 million (S$123,781 – S$206,305) range.
Buyers are attracted by the reputation of developers since most condominium projects are selling off-plan, so projects from the Stock Exchange of Thailand-listed developers create customer confidence. That’s one reason why the selling prices are generally higher in these developments than in those offered by newer developers.
This opinion piece has been contributed by Frank Khan, Executive Director and Head of Residential for Knight Frank Thailand.
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