Property consultancy Knight Frank released its overview of the Bangkok condominium market yesterday and the results bode well for property owners and investors in the capital. According to Knight Frank, the total accumulated supply of Bangkok condominiums for Q1 2013 stands at 254,638 units, a 7.5% increase from the end of last year. The average selling price of condominiums in the Bangkok area is also up 7.1% in Q1.
Growth in the Bangkok peripheral area was particularly strong, with selling prices up by 11.8%. Of the total 17,869 newly launched units in the Bangkok area in Q1, 13,131 (73% of the total) were located in the periphery of the city. Knight Frank attributed the strong growth in the peripheral market to a rush by property developers to tap into rising demand from lower income earners.
Two of the most prominent new developments in the Bangkok area are the Fuse Chan – Sathorn with 1,225 units and the fringe area Noble Revolve Ratchada with 802 units. Planned expansions of Bangkok’s public transportation infrastructure, particularly the MRT Purple line and Pink line, are viewed as another key factor in driving developers to push further into the city suburbs.
It should be noted that rising land and construction costs in the city center remain a serious barrier to entry for small-scale property developers according to Knight Frank. As of now, average selling prices in the Bangkok city area stand at THB 161,314 per square meter.
Photo: Coconuts Bangkok
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