THE resale prices of condominium units near the Sanam Pao, Ari and Saphan Khwai Skytrain stations have surged by 50-60 per cent in five to six years because of high residential density, according to Plus Property Co, the property-management arm of Sansiri.
A survey by the firm shows that the areas around these stations attract affluent individuals with inherited wealth, civil servants, private-sector employees and students, while the number of new projects is limited, since large sites are difficult to find.
These areas boast convenient transport because of their proximity to the BTS Skytrain. Once the Bang Sue interchange station becomes operational, condominium prices are expected to climb further.
The rental market is still bustling, with high demand among both Thai and foreign tenants contributing to returns on investment of 5-7 per cent for a one-bedroom, 30-square-metre condo, Anukul Ratpitaksanti, deputy managing director, said yesterday.
A survey conducted in the first half of the year found a supply of 2,184 condos, of which up to 91 per cent have been sold. The average was 12 units sold per month.
There are only nine high-rise units available from three condo projects near Skytrain routes, and they are being sold at an average price of Bt160,000 per square metre.
The are 197 low-rise units from 12 condo projects available, and they are being sold at an average price of Bt102,000 per square metre.
This shows that these areas remain in high demand among consumers, especially for high-rise condos near Skytrain routes.
In the second half of the year, only 1,371 units from two new condo projects will be entering the market, with average opening prices at Bt160,000-Bt170,000 per square metre.
The high prices are due to limited availability of large sites near Skytrain stations, or extremely high prices for land.
This has contributed to demand expanding for condos located on secondary roads or a short distance down side streets, since the units can still be considered near to Skytrain stations.
The price of land near the Sanam Pao, Ari and Saphan Khwai BTS stations during the past five years has increased by an average of 5-25 per cent per year, Anukul said.