Don’t be fooled by the marketing collateral & work out whether a property is really ‘prime’.
The term ‘prime’ gets thrown around the property industry a far amount. Developers will insist that their latest project is in a prime location next to popular amenities. The word conjures up connotations of exclusivity. The place to live. Well what exactly constitutes a property as being ‘prime’?
Let’s consider a few different options.
1. Price point.
For some markets in the world, the word prime is used to define a part of a city that achieves a certain price per square metre. For London values rose so rapidly post the global financial crash of 2008 that even more of the capital was dubbed as prime, so the new term ‘super prime’ emerged in order to categorise the new prices being achieved. That being said, prime is not used in quite the same way in Thailand but it gives us an idea of how other markets use the phrase.
2. Location.
This is the single most popular point that is argued to deem a property as being prime. Quite simply where the property is situated. For some the whole of central Bangkok is classed as prime. Therefore this encompasses Sukhumvit, Silom/Sathon and the Lumpini area. But Sukhumvit is a pretty long stretch. Are those situated around 71 as prime as say 8? And actually does distance to a Siam make a difference? Bangkok is one of those cites that has a number of centres. Siam is often picked out as one due to its shopping malls and it being the only interchange on the BTS. However, Asoke has the advantage of both access to both the BTS and MRT. It is confusing so lets split location down further.
a) Historic values.
Although two buildings next door to each other can warrant completely different prices due to the style and condition of the property, for any new projects being launched there will be a general price per square metre. Sukhumvit has long held its title as the most popular location in Bangkok with droves of developers getting in on the action. Sukhumvit can be split into lower, mid and upper with each achieving a different price per square metre as each have different appealing factors so you can use these values to decide how ‘prime’ the location really is compared to other projects.
b) Transport.
Vicinity to the mass transit network is big plus point for any project. The more accessible the better. So if you have found a property that is within walking distance, or even better with direct access to a BTS or MRT line, then there is no doubt that this property is in a prime location. Many developers are astute to this requirement providing some form of transport service between the property and the closest mass transit network line, but anything that is walking distance wins hands down.
c) Schools.
What is prime will entirely depend on your personal situation. If you have children at school it is unlikely that you want to spend much of your time commuting for the school run. This is exactly why many sois situated close to the international schools are in high demand by families. Should you be looking to capture this demographic as a landlord then keep this is mind. Buy close to a good school and you should have a string of tenants to pick from.
d) Shopping and entertainment.
If on the other hand you are a young professional, access to shopping and entertainment is more likely to be your thing. This is exactly why BTS stations such as Phrom Phong and Thong Lo have become such a hit. They are the place to be seen and even if you are in a condominium way up the ‘gold road’ and far away from the BTS station, it probably won’t matter as much as you still have Thong Lo’s host of entertainment on your doorstep.
3. Specification and services.
Last and not least, how high is the finish of the property? You may be interested to know that it wasn’t the popular spots of Lumpini or Sukhumvit that achieved the highest price in Bangkok, but the river. The Residences at the Mandarin Oriental took this crown and the reason? OK so the brand name is a bigger part but that is because it comes with the knowledge and security of a high level of specification and service. There is no question that this is going to be one prime property. So consider what finish the property will have as really only the upper tiers of the market can be classed as prime.