The average selling prices for new units in both the central business district (CBD) and the non-CBD of Bangkok continued to increase by more than 17 percent in both locations during 2015.
In the first research report to be published this year, real estate firm DTZ in its Residential Report for the H2 2015 reported that in strategic CBD locations, average selling prices for new units stood at THB 209,854 per sqm. This represented an increase of 4.1 percent over the prices recorded during H1 2015, but a substantial 17.6 percent jump year-on-year.
DTZ said that likewise, average selling prices in non-CBD locations in Bangkok during H2 2015 increased to THB 105,258 per sqm, up by 2.7 percent from H1 prices and an impressive 17.7 percent year-on-year.
The real estate firm attributed the continuing price growth to the growing scarcity of prime land suitable for condominium development, and the rising land acquisition prices that have helped to unit selling prices for condominiums, especially in CBD locations.
Correspondingly, for non-CBD locations, the cost of land acquisition for new projects on main roads and along mass-transit lines, it said, is the fundamental factor that is driving unit selling prices skywards. This is particularly evident with land in Thonburi from BTS Saphan Taksin to Bang Wa, and on Sukhumvit Road from Soi 44 to 76 and 65 to 115 – alongside BTS Phakhanong and Bearing.
DTZ said It anticipated the Bangkok condominium market will continue to grow further, especially in the areas along the existing and new mass-transit lines.
Adam Sutcliffe, Managing Director for Dot Property Group (Thailand), was not surprised by this latest data.
He said: “Throughout the last 10 years and more, almost all parts of Bangkok have witnessed extensive price growth.
“Even though times of instability and economic difficulties, this latest data shows that investment in Bangkok condominiums will, in almost every situation, result in capital appreciation.
“Anyone who is having second thoughts about investing in Bangkok property should study the facts, the research and the data. This is testament to the fact that the city still remains a very safe and secure investment.”
