Investors Still Interested With Oversupply Of Sukhumvit Properties

CBRE Thailand, a property consultant firm, said that many buyers are still eyeing the Sukhumvit area regardless of the fact that it is now crowded with many condominiums. In fact, the sales have even reached 70 per cent for the first quarter of 2018. Within these throng of condominium properties is a 4 star hotel in Sukhumvit which adds to the charm in the area.

AliwassaPathnadabutr, the managing director of CBRE, said that in all of the areas in Bangkok’s downtown location, the highest concentration of condominium properties is in Sukhumvit. As of the first quarter of this year, there are already 14,000 condo units in the district. She added that the total number of condo units sold is still quite high as it reached 10,000. It is responsible for 69.8 per cent of the sales despite the fact that there is an oversupply in the area.

Looking at the other areas of downtown Bangkok, the highest next to Sukhumvit only has below 6,000 condo units within it. The location that bagged the second top spot was Silom-Sathon which has a total of 5,700 condo units.

The highest sale for condo units is not Sukhumvit though because more buyers decided to ho for locations that are in the outskirt of Sukhumvit. The number of condo units sold in the outer part of Sukhumvit is 3,600 which resulted to 88.2 per cent sales. The second location with the highest percentage of unit sold is Lumpini boasting 84.1 per cent while 82.7 per cent was earned by Silom-Sathon in the third place followed by Pathumwan with sales of 80.6 per cent. The riverside area sold 78.6 per cent while Rama III only managed to earn 43 per cent of sales.

Looking at the numbers in the last quarter of 2017, the average price of a luxury condo unit for sale was 270,499 baht for every square meter. This is 15 per cent more expensive compared to the price in 2016. This may be the reason why there is a 4 star hotel in Sukhumvit as the area is catering more and more customers with luxurious taste.