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Bangkok Condos in Suburbs Greatly Grow in the First Half

By on Oct 03, 2013 in Property News, Residential

Suburbs have contributed greatly to the growth of Bangkok’s condominium market, accounting for some 70 per cent of launches, or 22,465 units, in the first half of 2013.  This growth was most pronounced close to the extensions of mass transit lines.

The growth in the peripheral area was fuelled by the extension of the Skytrain’s Sukhumvit line from On Nut to Bearing, covering the east side, and from Krung Thon Buri to Bang Wa, covering the south across the Chao Phraya River to Thon Buri district. Much activity was also seen in the proximity of the MRT Purple Line extension that links northwestern Bangkok from Bang Sue district to Nonthaburi province. This area saw 13 projects with 5,486 units launched.

The area around the Skytrain extension to Bearing included 3,136 newly launched units from 12 projects. Together, the areas surrounding mass transit extensions accounted for 9,123 units, or 46 per cent of the total new supply.

This reflects the entry of many leading developers to this market segment, which is considered to be a strategic location for development, as the two major mass-transit lines can service residents in this area. The area around outer Sukhumvit Road from On Nut to Samut Prakan also became a key development zone. This area showed good sales performance, with 49.7 per cent of units sold.

The growth reflects the availability of land, where prices are not as high as in the inner Sukhumvit area. Also, the area affords convenient access to the city centre by road or mass transit, and it boasts ample public facilities, shopping malls, retail outlets and an exhibition centre. This, coupled with relatively low existing supply, points to great supply growth in the future.

Demand in the peripheral market encompasses the medium-to-low-end segment, targeting buyers who had rented apartments. While buyers can now shift to condo ownership and pay monthly instalments comparable to their rent, unit sizes are compact. However, buyers gain the convenience of being situated along the Skytrain or MRT route.

The average peripheral selling price was highest along Krung Thon Buri-Bang Wa, at Bt106,083-Bt109,111 per square metre.

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