New research from Plus Property showed that the average total value of the market in Bangkok during 2012 to 2015 was THB1.4 billion with 50 percent of this value concentrated in the Asoke-Phrom Phong area. The property management firm is expecting real estate prices in the area to increase with the average local condominium price expected to reach THB260,000 per sqm. by 2017.
“Despite the Asoke-Phrom Phong area being only 2.5 square kilometers in size, the area has potential in several areas, including transportation, with interchanges between the BTS and MRT, which can attract both Thai and expat residents,” Mr. Poomipak Julmanichoti, managing director of Plus Property. “There are also more than 900,000 square meters of office space, shopping centers and leading academic institutions, including Srinakharinwirot University Prasarnmit Campus, and Wattana Wittaya Academy.”
Properties that are ready for transfer are in high demand according to Plus Property who add property owners and investors want to buy now as oppose to waiting and paying more in the next few years. A number of projects including The XXXIX and Edge Sukhumvit 23, both by Sansiri, and Lumpini 24 by LPN Development, are scheduled to be completed this year. These have a total of 1,056 units and are worth a combined THB8.6 billion. Nearly 4,500 more units will be completed between 2017-2019. The supply of condominiums in the Asoke-Phrom Phong increased 19 percent last year with 1,044 units coming online.
“One factor that has to be watched is the market reaction to new properties that are being sold and awaiting transfer next year and in subsequent years,” Poomipak explained. “The level of interest in these properties will show the level of growth that can be expected from luxury properties in the future. Regardless, it is clear that transfer-ready properties have bustling resale value this year due to the price advantage they have over new properties,”
