Since 2009, the section of Bangkok’s Sathorn Road from Sathorn junction to Taksin bridge has undergone a transformation from a strip of merchant shophouses to a luxury residential area boasting condominiums with over 8,000 units, according to a recent Nation survey.
“I was born in and have stayed at Soi Suan Phlu for 48 years, I have seen many changes to this location since 2009, with more condominiums around the area,” said Wipa, who remains a resident of the soi, or side-street.
The lifestyle in this location has also changed as condominiums replaced the previously dominant shophouses. As well, the businesses have shifted to a more modern trade to replace the traditional trades.
“My friend had sold her land at the price of 450,000 baht per square wah [$3,600 per sqm],” she said. “And now the price for her [former] land has increased to over two million baht per square wah.”
With the market trend, listed and non-listed property firms are parading to launch their new condominium projects in Sathorn district, the central business district of Bangkok. Launches totalling more than 31 billion baht [$992.7 million] have been made from mid-2018 through the first half of this year, according to the recent Nation survey.
Supalai Icon Sathorn, worth 20 billion baht, is the latest project launched to market by Supalai Plc. It is priced at 175,000 baht per sqm with a starting price of 8.2 million baht per unit.
Supalai CEO Prateep Tangmatitham said the mixed-use project would feature residential along with offices, shops and complete facilities on a 12,600sqm plot, 56 storeys high. The combined total of 780 residential units will offer a functional area of approximately 150,000sqm.
“We decided to launch this project when we saw a strong demand in this location,” he said.
Meanwhile, other property firms are also launching their condo projects on Sathorn Road from Sathorn junction to BTS Sathorn station.
For example, in the middle of last year Pruksa Real Estate Plc introduced the Reserve Sathorn worth 2.59 billion baht – and it has already sold out. The project offered a 280,000 baht per sqm starting price, or 13 million baht per unit. The project will be completed and transferred to customers in 2022.
Sathaporn Estate Co Ltd last September introduced its 1.3 billion baht Shade Sathorn condominium project at a 135,000 baht per sqm price, or 3.69 million baht per unit. The project is to be completed and transferred to its customers in 2021 or 2022.
The latest condo project is the 3.4 billion baht Anil Sathorn by Grand Unity Development Co Ltd. It goes for 260,000 baht per sqm, or a starting price of 11 million baht per unit.
From 2003 through last year, a total of 8,002 condominium units, worth over 40 billion baht, were launched for sale on Sathorn Road. Up to 95 per cent were successfully sold, according to research by property agency Colliers International Thailand Co Ltd.
Their research also found an average condominium price on Sathorn was at 250,000 baht per sqm.
Most property firms that launched sales for over 40 billion baht worth of condos on Sathorn Road last year through the first half of this year have successfully sold out, Colliers local research director Pattarachai Taweewong said.
For example, Reserve Sathorn launched mid-year and has managed to already sell out. Reflecting the demand, condominium prices also increased from the pre-booking 280,000 baht per sqm to 300,000.
Sansiri Plc in 2017 launched the Line Sathorn worth four billion baht. The project combines 327 units at 270,000 baht per sqm and a starting price of 7.9 million baht. The project sold out within a day of opening up to booking. Those units now enjoy an average resale price of 285,000 baht per sqm.
Raimon Land Plc last October introduced its 4.2 billion baht Tait 12 project on Sathorn Soi 12. At 264,000 baht per sqm, it offers a starting price of 7.6 million baht per unit, and reached sales of 70 per cent.
Sathorn Road is a prime location for residential projects, says Pruksa Real Estate Plc chief executive director of premium units Prasert Taedullayasatit, pointing to the locations of many lifestyle-oriented facilities, including a hospital, university, primary school, secondary school and shopping centre.
The location also boasts both MRT and BTS transit lines, giving an added boost to demand for residential projects in the area. Meanwhile, the area’s limited availability of land for building residential drives up the price of land there, Prasert said.
Land prices around Sathorn Road were recorded last year at an average of 500,000 per sqm. Prices have jumped 10 per cent, while demand for residential in the location enjoys continuing strong growth, he said. THE NATION (THAILAND)/ASIA NEWS NETWORK