Ms. Risinee Sarikaputra, Director of Research at Knight Frank Thailand, said that the condominium market in the upper Sukhumvit area is experiencing a slowdown both in terms of supply and demand. Developers have slowed down the launch of projects in 2019 to be aligned with market conditions.

According to research by Knight Frank Thailand, it was found that, during the first 11 months of 2019, the supply of condominiums in the ​​Phra Khanong-Onnuch-Punnawithi-Udomsuk included a total of 47,927 units. In the first 11 months of 2019, there were only 1,788 new condominium units launched for sale. The Lasalle-Bearing-Samrong area, during the first 11 months of 2019, had a total supply of 19,312 units; in the same time frame, there were only 639 new condominium units launched for sale.

The reduction of new supply causes condominium sales in the upper Sukhumvit area to increase. In the Phra Khanong-Onnuch-Punnawithi area, there were a total of 43,214 condominium units sold out of 47,927 units, representing a sales rate of 90.2 percent, which is an increase over the 87 percent rate of the previous year. The condominium units sold in the Lasalle-Bearing-Samrong area was 15,179 out of 19,312 units, representing a sales rate of 78.6 percent, an increase from the 72.4 percent of the previous year.

Condominium buyers in upper Sukhumvit include both Thai and foreigners who intend to buy such properties for their own residences as well as to rent out as investments. Some buyers also purchase condominiums in this area to keep as assets, as the selling prices of such units are still affordable and there is the likelihood that prices will increase in the future. 

In addition, the upper Sukhumvit area itself has the potential for growth due to the development of two billion-baht mega projects, which are “True Digital Park” and “Bangkok Mall”. Both are mixed-use smart urban projects. “True Digital Park” is located on 40 rai of land with the first phase being comprised of two 40-storey buildings with condominiums, an office building at the top and retail spaces on the bottom.

The project’s second phase will include a hotel. The “Bangkok Mall” project is being developed by a retail giant, namely, The Mall Group. The project is located on 100 rai of land. The construction area is expected to be around 800,000 square metres, consisting of a shopping centre, office buildings and hotels. Once both of these large projects are fully open for service, they will definitely make an impact on the upper Sukhumvit area. 

Graph 1

Demand, Supply and Sold Rate of Condominiums in Phra Khanong-Onnuch-Punnawithi-Udomsuk, 2010 to November 2019

Graph 2

Supply, Demand and Sold Rate of Condominiums in ​​La Salle-Bearing-Samrong, 2010 to November 2019

The sales price level has continuously increased. The average selling price of Grade A condominiums in Phra Khanong-On Nut-Punnawithi-Udomsuk in November 2019 was 166,780 baht per square metre. This increased from 2012, which had an average price of 122,493 baht per square metre. From 2012 to mid-2019, the area experienced a 6-Year Compound Annual Growth Rate or CAGR of 5.9 percent.

The average selling price of Grade B condominiums in the area in November 2019 was 100,500 baht per square metre. It increased from 2011, which had an average price of 83,600 baht per square metre. From 2011 to November 2019, the area experienced a 7-Year Compound Annual Growth Rate or CAGR of 2.7 percent.

Grade C condominiums in the area in November 2019 had an average selling price of 68,125 baht per square metre. It increased from 2011, which had an average price of 57,098 baht per square metre. From 2011 to November 2019, the area experienced a 7-Year Compound Annual Growth Rate or CAGR of 2.6 percent.

Graph 3

Average Selling Price of Condominiums in Phra Khanong-On Nut-Punnawithi-Udomsuk Area, 2011 to November 2019

Grade B condominiums in the La Salle-Bearing-Samrong area had an average selling price in November 2019 of 93,459 baht per square metre, an increase from 2012, which had an average selling price of 83,235 baht per square metre. From 2012 to November 2019, the area experienced a 6-Year Compound Annual Growth Rate or CAGR of 2.05 percent. The average selling price of Grade C condominiums in November 2019 was 62,113 baht per square metre; this increased from 2011, which had an average price of 45,571 baht per square metre. From 2011 to November 2019, the area experienced a 7-Year Compound Annual Growth Rate or CAGR of 5.2 percent.

The selling price of condominiums in this area is likely to increase further. In comparison, the average selling price of condominiums in the Phra Khanong-On Nut-Punnawithi-Udomsuk area, if in a high-rise building, is 138,000 baht per square metre.

Graph 4

Average Selling Price of Condominiums in ​​La Salle-Bearing-Samrong, 2011 to November 2019