Bangkok’s On Nut has been identified as having a robust, growing property market where rental rates have jumped 13 percent in the last 12 months, and that’s on top of a 30 percent rise in resale prices over the same time period.
Bangkok’s Plus Property agency revealed the data, with the area’s close proximity to the capital’s central business district (CBD) zones and a plethora of highway connections leading to the rise in popularity.
Poomipak Julmanichoti, Managing Director of Plus Property Company, revealed On Nut – and the area around Sukhumvit 77 – is now in high demand.
He said the area is home to various longstanding communities, and as an offshoot of main Sukhumvit Road features a multitude of homes, shops, and restaurants. On Nut’s BTS station once marked the end of the Green Line prior to the extension to Bearing, making it a major point of connection for office workers and students seeking access to the city centre.
This, he said, led to the emergence of small-scale businesses in the area.
Considerable population density, vicinity to the city centre, and convenient commuting combine to make On Nut an area of interest for many, and a burgeoning economic hotspot that lends support to denser zones in Sukhumvit.
During the past three to four years, On Nut has seen high growth in its condominium sector, backed by demand that is on par with the inner Sukhumvit zones, yet with lower prices than the latter’s THB 300,000 per sqm or more.
The inner Sukhumvit zones also face the problem of limited supply and land availability, while On Nut is still capable of supporting mid-range property development.
Easy access to CBD areas makes On Nut of even more interest to those exploring the condominium market, especially potential buyers and tenants who work in the city centre, while rising lease rates are propelling interest among investors.
During 2014, rental rates rose by 13 percent to an average of THB 20,000 per month for one-bedroom units – well below rates found in nearby Thong Lor and Ekkamai. Resale prices, meanwhile, have risen by 30 percent between 2013 and the end of 2014 to THB 89,573 per sqm.
Poomipak saidL“Most leasing tenants are foreigners from China, Singapore, Japan, and numerous other countries. While they prefer to live in the Sukhumvit area, the zones closer to the city centre have grown dense and expensive, leading to On Nut’s rise.
“While most developers are still focusing on new projects along BTS extension lines, we believe On Nut is a key strategic area with many distinctive advantages.
“The condominium market in On Nut still has plenty of room to grow, and the launch of new high-end shopping malls in Sukhumvit will push even more demand into On Nut, while community malls continue to rise in popularity.
“We expect On Nut to be a very lively area with rising demand for residential properties,” he concluded.
