Prime Sukhumvit continues to be one of the most desirable areas in Bangkok and this is something developers have taken note of. According to recent research from Knight Frank, the number of condo units in Prime Sukhumvit has grown from 3,346 in 2012 to 11,336 at the present moment.
Domestic buyers lead the demand for these units with 76 per cent of Prime Sukhumvit condo buyers being Thai. Foreign interest in these units has also been strong with 12 per cent of buyers coming from Asia and the rest coming from Europe, the USA, Canada, Oceania, and the United Arab Emirates.
The top Asian buyers are those from Hong Kong, Singapore, Japan, China, and Taiwan, claims Frank Khan, Executive Director and Head of Residential, Knight Frank Thailand. Japanese demand is located mostly in the Thonglor and Sukhumvit 49 neighbourhoods. The reasons buyers prefer Prime Sukhumvit include the location and low prices when compared to their home countries.
“I think a lot of people find Bangkok attractive in terms of dining and entertainment. It’s a very relaxing environment. For foreign buyers, Bangkok can feel like a bargain. Condos at the peak of the market, those costing more than USD 17,000 per sq. metre can seem reasonable compared with prices at home. USD 18,000 per sq. metre gets you nothing in Hong Kong,” says Andrew Gulbrandson, Head of Research at JLL, Thailand to the Financial Times.
Out of all the buyers, almost of half of them purchased condo units in Prime Sukhumvit for personal use. A total of 36 per cent of condos sold were bought by investors looking to generate long-term rental income. According to Knight Frank, some buyers are speculators who purchase condo units as a short-term investment.
The overall demand for Prime Sukhumvit condos between 2012 and the 1st quarter of this year has been good despite the limited new supply available in the market. The sold rate for new units in Prime Sukhumvit was 91.5 per cent during the 1st quarter.
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