The cluster of Bang Phli-Bang Bo-Bang Sao Thong in Samut Prakan was the hottest zone in Greater Bangkok in 2022, with land prices soaring the most over two consecutive quarters. The area also has the most new low-rise houses.
According to the Real Estate Information Center (REIC), the number of low-rise houses launched in Bang Phli-Bang Bo-Bang Sao Thong in the first nine months of 2022 totalled 8,169 units worth 64.2 billion baht, the largest in Greater Bangkok.
The number of units and value accounted for 20.8% and 23%, respectively, of total new low-rise houses in Greater Bangkok for the period.
Some of the projects in this area were developed as joint ventures between listed developers and investors from Japan and Hong Kong.
One of them was Lake Legend Bangna-Suvarnabhumi, a luxury single detached house project worth 6.3 billion baht in Bang Phli, developed by Property Perfect Plc and Hongkong Land.
Another was Britania Bang Na KM17, a mix of single detached houses, duplex houses and townhouses worth 2.6 billion baht in Bang Phli, which was a joint venture between Britania Plc and Nomura Real Estate Development.
“Bang Na-Bang Bo is very well-known among Japanese investors including our partner,” said Sutthirak Sateanraphap-a-yut, chief executive of Thanasiri.
“Demand is from those working in industrial estates. They look for houses priced around two million baht a unit.”
According to REIC, the location where the absorption rate of low-rise houses was the highest in the third quarter was Bang Phli-Bang Bo-Bang Sao Thong at 3.5 units per month, higher than Greater Bangkok’s average of 3.2.
As Bang Phli-Bang Bo-Bang Sao Thong was attractive to both residential developers and industrial estate developers, land prices in this zone soared the highest in the second and third quarters.
According to REIC, the year-on-year increase in prices of vacant land in Bang Phli-Bang Bo-Bang Sao Thong in the second quarter was 40.5% while the price index of vacant land in Greater Bangkok in the second quarter rose 6.5%.
Land prices in the three districts kept rising in the third quarter with a year-on-year jump of 55.7% while the price index of vacant land in Greater Bangkok in the third quarter rose 10.3%.
The second highest increase in land prices in the second and third quarters were in Bang Kruai-Bang Yai-Bang Bua Thong-Sai Noi in Nonthaburi with 24.2% and Muang and Pak Kret in Nonthaburi with 42.8%, respectively.
REIC’s acting director-general Vichai Viratkapan said the increase in land prices in outer Bangkok locations suggested that land prices in those locations remained low, feasible for the development of low-rise projects.
“Developers should be more cautious about launching new supply in locations where available supply remained large like Bang Phli-Bang Bo-Bang Sao Thong though they had the best sales rate.”