Growing demand also brings about high competition
The route from the Phloenchit intersection to Sukhumvit Soi 55 or Thonglor is seeing high competition among property developers as they launch condominium projects worth more than Bt100 billion, with more than 10,000 units.
Since last year nearly 100 projects have been launched in the area by both listed and non-listed property firms. Construction will be complete between the end of this year and 2013, according to a survey by The Nation last week.
Examples are The Clover Thonglor, Le Lux & Sky Walk condominium, Ivy Thonglor, The Trendy Condominium, Noble Phloenchit, Ideo Morph 38, and Aequa.
Condominiums along this route are priced between Bt80,000 and Bt200,000 per square metre.
Luxury residences priced over Bt150,000 per square metre are located between the Phloenchit intersection and the top of Sukhumvit Road between Sois 1 and 10. From Soi 10 to Soi 55, prices range between Bt80,000 and Bt150,000 per square metre.
One-bedroom units with utilisation space of 45-60 square metres are popular in this location.
Noble Development president Thongchai Busrapan said that after bookings for Noble Ploenchit opened from June 19-22, the company achieved presales worth Bt7.2 billion, or half of the total project value of Bt14 billion.
“Although this location has |high competition, our project is freehold, which is difficult to find |in this area, where most projects are for long-leasehold contracts,” he said.
Demand in this location is sufficient to absorb the high number of condominium launches, according to a survey by the Real Estate Information Centre.
Growing demand in this area from both local and foreign buyers who live in Bangkok has driven condominium prices 10-20 per cent higher than their presale prices, depending on how close they are to Skytrain.
For example, Ficus Lane on Sukhumvit 44/1, which was priced at Bt50,000 per square metre when introduced in 2005, now sells for Bt110,000 per square metre.
Condominiums on Soi Thonglor that recorded presale prices of about Bt100,000 per square metre now go for more than Bt120,000 per square metre.
Condominiums at Soi Ruamrudee priced at Bt40,000 per square metre five years ago now record sales at Bt120,000 per square metre.