With the introduction of Bangkok’s relatively new Skytrain, down town property spaces are becoming more coveted each year with land prices soaring up around them. As a result, the hottest demand on the property market is for small inner-city Bangkok condos located near mass transportation.
As Bangkok developers are unfamiliar with catering to this demand, many are turning to Japanese companies who specialize in simplicity and space optimization.
Bangkok developers’ urgent need to change their building habits is a result of the rapidly growing economy and urban population. With more people moving to the city each year, roads are already supporting over 4 million more vehicles than they were originally built to withstand. When the worsening congestion problem was answered by the development of the Skytrain system, nearby land plots were quickly snatched up by developers despite their skyrocketing prices.
Developers who are paying record prices for conveniently located land plots must now strategically build enough affordable condos to cover the high-cost of land, thus are looking toward Tokyo developers who have expertise in creating developments where every bit of space counts.
Several partnerships between Bangkok and Tokyo developers have formed to efficiently meet the demand for Bangkok condos, such as a joint venture with AP Thailand Plc and Mitsubishi Estate Co. While the companies are working toward developing smaller and more affordable properties, they have stated they will not create a space smaller than 21.5 sq m., which is just 1.5 sq. m above the legal minimum size.
