Sukhumvit property is on developer’s agenda’s with many investors wanting luxury products.
Recent data released from Edmund Tie & Company (formerly DTZ) states that Sukhumvit is the most active area of Bangkok for residential development. A favoured part of the capital for both the Thai and the expatriate communities, Sukhumvit’s accessibility to amenities such as schools, entertainment, shops and the BTS Skytrain are reasons why developers continue to focus on this area.
For Q2 2016, Edmund Tie & Company have recorded a launch total of 1,216 new units. This is across seven condominium projects. Sukhumvit property accounts for 664 of this units, or 54.6 percent, whilst the remainder were in Sathorn/Silom. Traditionally the known as the business hub for Bangkok, Sathorn and Silom have seen a continual rise in the number of residential schemes being built to meet the growing demand of people choosing this area as a place to live.
Whilst Sukhumvit, Sathorn and Silom have been a hive of activity, there have not been any launches in either Central Bangkok (in and around Lumphini Park) or on the river. Central is already very squeezed for land, and the river has has seen a lot of activity recently with the launching of Four Seasons and Iconsiam, both luxury projects with well known hotel brands behind them.
This luxury segment of the residential market remains strong. High-end projects have outperformed the lower end of the market with average take up rates for luxury schemes between 60 to 83 percent. This compares to 45 to 50 percent for lower end schemes. Resales have performed well although it is worth noting that values vary from building to building in Bangkok. This is partly due to the quality of the build, but also upon completion how it is managed and maintained.
Edmund Tie & Company predicts for there to be an increased supply for the condominium market for the remainder of the year with a particular focus on the luxury market.
