While Bangkok’s CBD continues to be the most attractive area for both investors and homebuyers, Bangkok’s fringe areas hold a lot of potential, according to new research from JLL. Outer Sukhumvit Road, the area from Sukhumvit 71 to Bangna, is the most promising, says the property consultancy.
The fringe area of Bangkok holds good potential in terms of development opportunities with sustained demand and a limited supply of available land for development, says Phanom Kanjanathiemthao, Managing Director, Knight Frank Thailand. It was added that projects in this area have high sales prospects and prices may be on an upward trend.
The outer Sukhumvit Road condo supply has increased by approximately 4,000 to 5,000 units annually during the past three years with an increase in supply of 4,832 units recorded in 2016. Most of the newly launched residential projects encompassed buildings with smaller unit-to-building ratios with 64 per cent of new developments being high rise projects and the other 36 per cent of new supply being from low rise projects, shows JLL.
More grade A condo supply is being completed by developers and this increase reflects that the area has potential to grow in terms of sales pricing. While there is no certainty of price growth, it is worth watching to see if prices for condominiums on the fringe of Sukhumvit increase in the future.
According to JLL, the accumulated demand for condominiums in the outer Sukhumvit area was 33,133 units, which saw the area have an accumulated sales rate of 81.2 per cent. One important fact to acknowledge, new supply in the outer Sukhumvit area in the past few years has not significantly exceeded demand for units in the area. In addition to the strong cumulative sales in the fringe of Sukhumvit, the even supply and demand demonstrates the high potential of the area, concludes JLL
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