Sukhumvit Still Popular for Condos Despite Costs

January 11, 2019

With its proximity to BTS station, Sukhumvit will remain a popular location for both ownership and rental residences, says Aliwassa Pathnadabutr, managing director, CBRE Thailand Co Ltd. In fact the 2019 condo-market outlook in Sukhumvit and other central business district (CBD) zones will compare favourably with last year, she said yesterday after joining the launch of FYNN Asoke Sukhumvit 10.

The price of a condominium unit in the Sukhumvit area has sharply increased, with starting prices for many projects at Bt250,000 per square metre. Despite the cost, there are many new projects around Sukhumvit, particularly in Phrom Phong and Thonglor. Customers are also checking out other prime locations with a lower supply and better value-to-money price packages, said Aliwassa.

For up-and-coming residential development in 2019, single homes and townhomes around connecting areas will gain more interest, she said. With the price of land in the heart of Bangkok so high, many super luxury and branded residences have tremendously high prices per square metre. For 2019, getting the right mix of location, package price and product development is very important and developer needs to carefully calculate it.

Low-rise condominiums therefore become another option for those looking to live in the city, but for a more affordable price. At the same time, land prices continuously increase. And we are on the cusp of witnessing a new height in the price of land – up to Bt3 million per square wah in central Lumpini – due to the low supply of freehold land plots.

Consumers will consider purchasing a condominium not only for their own residences but also for investment. Today’s consumer is more focuses on capital gains compared to the past. Consumers tend to consider a project that is both good for their own residence and offers more opportunity for renting out or selling, along with yield. Meanwhile, the developer needs to shift to lifestyle products and a greater focus on a project’s unique selling points to meet the needs of a consumer, Aliwassa said.

Following the market trend,CBRE is the sale agency for FYNN Asoke Sukhumvit 10, a project offering a price of Bt185,000 per square me tre.

FYNN Asoke Sukhumvit 10, developed by Fynn Development Co Ltd, has a total project value of Bt1.8 billion.

This year the company plans to launch two low-rise condominium projects under brand FYNN, said Fynn Development Plc’s chief executive officer Pongsethorn Jom Salakshana. FYNN Asoke Sukhumvit 10 is the first 2019 project launch, with the next scheduled for the second half of this year.

Of the company’s first two projects launched in the past year, FYNN Aree had closed sales worth over Bt350 million and transferred all units to customers, the Bt800 million FYNN Sukhumvit 31 build is over 90 per cent sold and under construction with completion and unit transfers expected within the fourth quarter this year.

The company also plans to develop additional property projects worth a combined over Bt4 billion in this year and the next year, in hospitality, low rise and high rise condominiums. This will boost its sale growth to double digits in this year and the next year, Pongsethorn said.