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Published on March 27, 2008

Interest in inner northern Bangkok has heated up, with strong expansion in both supply and demand, says international real-estate services firm Jones Lang LaSalle.

Company findings reveal most new units launched in Bangkok since last year have been targeted at the middle and upper-middle segments and of relatively smaller size: studios and one-bedroom units.

Last year alone, 11,480 units were launched in new projects. The firm's most recent research shows that almost half of the new units launched are located in inner northern Bangkok, from Phya Thai district to around the Phaholyothin-Lat Phrao intersection.

Dan Tantisunthorn, head of research at Jones Lang LaSalle, said the introduction of new supply in this area had been driven by expected demand for medium-priced condominiums close to mass transit.

In fact, some projects in high-demand locations like Phaholyothin and Lat Phrao roads were reportedly sold out within a week of their launch. The Phaholyothin area has become one of the more popular locations, given its convenient access to the Skytrain and more abundant amenities in the area. An existing station will connect with the under-construction Airport Rail Link, another factor driving demand growth for condos in this area, he said.

In the luxury and high-end segments, developers have become more conservative, as evidenced by slower growth in new launches.

Jones Lang LaSalle's study shows the number of new units launched in the luxury and high-end segments last year declined 40 per cent from 2006.

"This slowing reflects a scarcity of potential sites appropriate for high-end condominium developments and developers' concerns over higher competition," said Dan.

Driven by strong sales in the middle and upper-middle segments, the reported sales rate for marketed projects now stands at nearly 80 per cent, up from 70 per cent early last year.

The number of units sold last year reached 12,300, outstripping the number of new units launched during that period.

The average asking price for new projects in the middle, upper-middle and high-end segments this past January was Bt91,500 per square metre, up more than 14 per cent year on year. That for new units in inner northern Bangkok saw a bigger rise of almost 16 per cent to Bt71,800 per square metre.

The Nation