According to Knight Frank Thailand, , Bangkok’s riverside property is gaining in popularity for its waterfront lifestyle and scenic views, the company noted that many luxury hotels, high-rise condominiums, and corporate towers have risen on both sides of the river in Bangkok, making the area a prime spot for development.
Statistics show that the cumulative supply of the Bangkok Riverside condominiums was about 19,807 units as of the third quarter of 2012, an increase of 18.7% from the end of 2011.
The total of newly launched condominiums during the third quarter of 2012 was approximately 3,117 units. Rama 3 Road contained the highest number of newly launched condominiums, with around 1,388 units, or 45 percent of total units, offered in the market. This is followed by the Krung Thonburi area and Narathiwas Ratchanakarin Road with around 23 percent and 20 percent respectively.
Risinee Sarikaputra, Associate Director of Research and Valuation Department, Knight Frank Chartered (Thailand) Co., Ltd, said that there is a positive outlook regarding condominium supply in 2012.
“We have seen new luxury condominiums being launched in the Riverside area targeted for Thai buyers as both personal residences and investments. There will be an additional supply marketed towards other Asian condominium buyers from Singapore, Hong Kong, and mainland China,” she said. The demand of condominium units was recorded at 2,404 units in third quarter of 2012, a significant increase of 1,633 units from just 771 units at the end of 2011.
The majority of demand in this period was for condominiums located on Rama 3 Road, where a total of 1,085 units were sold. Most of them were from recently launched projects such as Supalai Prima Riva and D Condo Sathupradit 49. Another area where demand was high during the third quarter of 2012 was in Krung Thonburi, where about 605 units out of 1,633 newly launched units were sold.
The overall take-up rate for condominium projects in the Riverside area during the third quarter of 2012 was approximately 45 percent, a strong increase from just 22 percent at the end of 2011. The take-up rate in Sathorn-Silom area represented the highest rate at around 91 percent, followed by Krung Thonburi area, with an 83 percent take-up rate.
There are many condominium developments in Sathorn-Silom, as it is an established business area with easy access to Sukhumvit, Rama 3, and Riverside areas. In addition, many condominium projects are scheduled to be completed in Krung Thonburi, thanks to the new mass transit extension lines across the river that will increase the accessibility from Thonburi to the CBD.
The average selling price in the Riverside area was approximately THB 102,730 per sqm, as of the third quarter of 2012. The highest average price was in Sathorn-Silom, with average prices at THB 117,224 per sqm. Narathiwas Road ranked second with an average selling price of THB 115,813 per sqm.
Risinee also said that condo prices in the Bangkok Riverside area are projected to increase sharply due to the lack of land to develop new projects. The selling price in the City area will also increase due to the limited availability of land, as well as the fact that developers tend to opt for good construction standards by using high-quality materials and specifications.
She added: “We will see around 400 new condominium units launching in Bangkok’s Riverside area in 2013, including a new high-rise project The Breeze on Narathiwas Road by listed developer Eastern Star; and a low-rise project The Wing Sathorn on Krung Thonburi Road. These projects will offer more choices to buyers in condominium markets. We also expect that nearly 2,600 condominium units are scheduled to be completed in 2015; this figure includes seven condo projects located in Bangkok’s Riverside area.”
Among the new entrants will be Menam Residences, a condominium development that will be located on Charoen Krung Road. Scheduled to be complete by December 2016, the project will feature a 54-storey building with 294 condominium units with a combined value of THB 3.3 billion.