Everyone has their own favourite “next property hotspot’ in Thailand. What’s yours and why?
For real estate firm Plus Property it is Phayathai and certain parts of Phaholyothin in the heart of central Bangkok.
The agency recently issued a report that highlighed how this area of Bangkok looks set to follow in the footsteps of the Phloenchit, with unit prices showing significant annual price increases.
To support its claim it highlighted property projects completed less than just four years ago that are now boasting resale prices almost 80 percent higher than their original valuations, averaging THB 150,000 per sqm. New projects are available at around the THB 200,000 per sqm mark, and more developers are expected to jump into the fray with land still available.
Poomipak Julmanichoti, Managing Director of Plus Property, noted that Sukhumvit remains Bangkok’s most valuable and reputable road and one of the country’s major economic avenues.
He said that while land plots in Silom and Yaowarat have attained higher valuations, Sukhumvit has always been the leading site for condominium developments.
However thorough analysis showed that the Phloenchit-Sukhumvit and Phayathai-Phaholyothin areas of central Bangkok are both major property hotspots, with many similarities. Both enjoy full Skytrain coverage and are lined with offices of major companies, parks, shopping malls and hospitals. Both also have a high proportion of long-time residents along side roads.
Poomipak said during the second quarter of this year: “Today, the area that generates the most interest with regard to property is Phloenchit-Sukhumvit, however this may not be the case in the future as land availability is becoming very limited.
“Plus Property’s survey revealed that Phayathai-Phaholyothin is a burgeoning new property hotspot that is enjoying growing popularity. Over the last decade the area averaged one new condominium project launch each year along the main road, with many more projects established on side roads. Each of these main-road projects quickly sold out, and resale prices have consistently showed huge improvements year after year.
“Certain projects, despite having been completed less than just four years ago, now show sell-on prices 80 percent higher than their original rates.
Between 2008 and 2015, the Phayathai-Phaholyothin zone saw 12 new project launches, with one more due for completion next year. These projects comprise a combined 4,048 units, all of which have been sold. Average price currently stand at THB 150,000 per sqm, and new projects are expected to hit and exceed the THB 200,000 per sqm mark,” he concluded.
