LPN Wisdom reports that the housing needs in Chaengwattana, Charansanitwong and Ekkachai-Sirindhorn areas have continued to grow in accordance with the expansion of MRT routes and road networks that connect all the 3 areas to the heart of the city. The average absorption rate is 15-20 units per month, especially the housing with the price of not over 2 million baht per unit.
Mr. Prapansak Rakchaiyawan, Managing Director of Lumpini Wisdom and Solution Co., Ltd. (LPN Wisdom), the real estate development research and consulting company under L.P.N. Development Public Co., Ltd. (LPN), said that from the survey of consumer’s house-buying power in north Bangkok, it is found that the purchasing power in Chaengwattana is high with the absorption rate of 13 units per month. The popular price range is not over 2 million baht. At the end of September 2020, there are 2,273 backlogs of condominium units which are expected to be sold over the period of 11 months. It is the opportunity for business operators to launch new projects in this area, particularly the condominium projects with the price of not over 2 million baht.
“On Chaengwattana road, there situates the Government Complex. Moreover, the MRT Pink Line Kaerai-Minburi is being constructed and will be connected with MRT Purple Line Bangyai-Bangsue at Kaerai intersection, SRT Dark Red Line (Bangsue-Rangsit) on Vibhavadi-Rangsit road and BTS Green Line Mo Chit-Saphan Mai. The area is easily accessible so there is a surge in the housing demand especially those with the price of not over 2 million baht per unit. At the same time, the land price has continuously increased. The appraised land price of the Treasury Department from 2016-2020 shows that the average land price on Chaengwattana road is 130,000-140,000 baht per square wa with a tendency to increase by no less than 10% in 2021 as a result of the opening of MRT Pink Line which is expected in 2022-2023. The needs to buy plots of land for residential project development have thus also increased,” Mr. Prapansak said.
West Bangkok Zone near Fai Chai-Ta Pra MRT is Up and Coming
The west Bangkok area around Fai Chai-Ta Pra MRT on Charansanitwong road is becoming popular among real estate developers. From 2016-2020, the total of 5,199 condominium units have been launched with the average sales volume of 18 units per month. As of the end of September 2020, the backlog is 1,999 units which will take approximately 10 months to be sold. The housing needs in this location still exist so it is the opportunity for business operators to launch new projects in this area, particularly the condominium projects with the price of not over 2 million baht.
Mr. Prapansak stated that Charansanitwong is the residential area with many local communities. In addition, the MRT Blue Line Extension Bangsue-Ta Pra and Hualampong-Bangkhae route have been opened for service so commuting from Thonburi to Pranakorn has become more convenient. The housing needs are rising in parallel with the expansion of the city and family size. At the same time, the land price in this area is increasing approximately 8% per year. The appraised land price of the Treasury Department from 2016-2020 shows that the average selling price of plots of land around Charansanitwong area is 150,000-200,000 per square wa with the tendency to increase by 8-10% in 2021.
“Ekkachai-Sirindhorn” Sees Investing Opportunities
As for south Bangkok, many property developers have their eyes on Ekkachai-Sirindhorn area as it is an old commercial district. There are employment opportunities in the seafood and processed seafood industry of small and medium enterprises. The area is connected to Samutsakorn province and is conveniently accessible via 3 main roads i.e. Petchakasem road, Rama 2 road and Sirindhorn road. The demand for housing and house-buying power in the area are thus increasing, particularly the housing with the price of lower than 2 million baht.
From the survey of LPN Wisdom, it is found that there are the total of 12,919 residential condominium units launched from 2014-2020 around Ekkachai-Sirindhorn area. The average absorption rate is 15-20 units per month in 2019. As of the end of September 2020, there is the backlog of 9,559 units. The condominium units with the price of not over 2 million baht receive positive feedback from the customers. The return of investment from renting out condominium units in this area is around 5% per year.
“Housing with the lower price range is in high demand in Ekkachai-Sirindhorn area since the land price is not very high in comparison with other locations in Bangkok and peripheral areas. The report on the appraised land price of the Treasury Department from 2016-2020 indicates that the average land price in this area is 37,000-90,000 baht per square wa and has increased around 5-8% per year.“ Mr. Prapansak said.
The survey of new projects launched during the first 9 months of 2020 finds that there are the total of 50,435 units launched in Bangkok and peripheral areas, valuing 205.453 billion baht. It decreases 34% and 33% respectively when compared to those of the same period in 2019. The average absorption rate of all new projects launched is 18%, decreasing from 32% of the same period in 2019.
“It is expected that during the last quarter of 2020, property developers are planning to launch around 14,500-24,500 new units in Bangkok and peripheral areas, worth 110-125 billion baht. Therefore, the number of all new projects launched in Bangkok and peripheral areas in 2020 is 65,000-75,000 units, worth 315-330 billion baht, decreasing 25-30% compared to 2019,” Mr. Prapansak said.
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