Some 75 percent of BTS commuters do not own residential property in Bangkok, with On Nut emerging as the most-wanted location and the THB 2.5 million price range being the most desired.
These were the results of a condominium survey focusing on the Dark Green and Light Green lines from real estate firm Plus Property focused on market demand for condominiums.
The study showed 75 percent of those surveyed do not own any residential property, however most showed interest in condominium projects in the vicinity of BTS stations due to the convenience in commuting.
The On Nut zone still topped the table in terms of consumer interest, with a target price in the THB 2.5 million price range.
Poomipak Julmanichoti, Managing Director of Plus Property, said the company’s research team had carried out a study on condominium demand with a focus on office workers who rely on the Dark Green and Light Green BTS lines for daily commute.
“The sample group largely comprises first-jobbers and relatively experienced members of the workforce aged between 25 and 35 years-old, most of which would prefer to live close to a BTS station.
“While more consumers expressed an interest in developments towards the city’s fringes, they still prioritised locations in the vicinity of BTS stations due to the convenient commute and relatively predictable commute time.”
The survey revealed that most consumers would choose to live between 9 and 10 kilometres – or 30 minutes – from their office while the ideal distance from the BTS station would be within 500 meters.
The target price point falls into the THB 2.5 million range but could rise as high as THB 3 million to THB 4 million, while the most popular unit size mentioned was between 35 sqm and 40 sqm.
Notably, 75 percent of the sample group did not own any residential property, and roughly half of the group lived in dormitories or apartments.
Part of the reason, according to Plus Property, was the fact that most condominium units are priced beyond their budget which in, turn, is an indicator that the majority of condominium unit owners along these two BTS lines do not rely on the skytrain system for commuting, and that there remains plenty of unfulfilled demand in this market.
According to the survey, the most in-demand area for Green Line commuters is On Nut, a former terminal station that is now connected to the Bearing extension line. Thanks to easy access to inner Sukhumvit and lower property prices, several commercial developments have cropped up in the area – including the 100-rai Bangkok Mall at Bangna intersection, an expansion of BITEC, and various community malls from On Nut to Phra Khanong, such as Piccadilly Bangkok and Habito.
Plus Property noted that these projects have livened up the On Nut zone and increased its commuter traffic. Furthermore, foreigners from China, Singapore and Japan are showing more interest in rental properties in On Nut. Rental prices in this area rose by 13 percent during 2014 to THB 458.89 per sqm, or approximately THB 20,000 per month for a one-bedroom unit, This, is commented, is remarkably cheaper than rentals in nearby Thong Lo or Ekamai. Resale prices rose by 30 percent between 2013 to 2014 with an average of THB 89,573 per sqm.
“The behaviours and preferences of commuters on the Dark Green and Light Green BTS lines shows that demand for residential condominium projects is on the rise.
“This particular type of property has plenty of potential to grow outward towards Bangkok’s suburban zones along various BTS routes, and consumers no longer put distance from their office at the top of their priorities when choosing a place to live in, as easy commuting can drive them to become interested in developments in these outer-city zones.
“Some 53 percent of these consumers do have homes, but only 23 percent actually own their places of residence, while 22 percent live in their parents’ place and the remaining 8 percent reside with their spouses.
“The latter two groups are the most likely to purchase condominium units in the future. This represents a great opportunity for developers to come up with projects that sit within 500 meters of BTS stations in outer Bangkok or 800 meters in midtown areas.
“Inner-city projects do not need to sit right next to a BTS station, but having one within one kilometre is ideal. Price, meanwhile, should be below THB 3 million to remain affordable for this particular group of consumers,” concluded Poomipak.
