CBD area and proximity to BTS favoured by buyers

Skytrain

Skytrain

In 2008, the most interesting locations in Bangkok and the provinces were obviously the Central Business District (CBD) areas. Areas on or near BTS and MRT lines were particularly favoured by buyers, according to research by property agency Knight Frank LLP.

In 2008, the most interesting locations in Bangkok and the provinces were obviously the Central Business District (CBD) areas. Areas on or near BTS and MRT lines were particularly favoured by buyers, according to research by property agency Knight Frank LLP.

The agency said buyers were willing to pay the highest price for proximity to conveniences such as schools, hospitals, restaurants, entertainment venues and other facilities.

The capital’s Ratchadaphisek area has become popular but projects there are not highend due to a lack of conveniences. Rama IX is a brand new area mostly containing B or B+ developments.

Hua Hin and Chaam were the most popular for Thai families and foreigners looking for second homes. Pattaya’s property market was very attractive to foreigners looking for water activities and nightlife.

The newly emerging area of Rayong has gradually caught the public’s eye, and investors are launching big projects and fivestar hotels in this area.

The best example is the Phuphatara Project, which just signed a management agreement with Marriott, which was involved in the development.

In the first quarter, the condominium market in Bangkok’s Sukhumvit and CBD areas saw prices of Bt90,000 to Bt140,000 per square meter with usable area of 200 sqm. The second and thirdquarter markets saw a downward trend, with developments offering condominium unit prices not exceeding Bt10 million in response to the economic downturn.

In the final quarter of 2008, small units were still selling in the 45 to 52 sqm range at prices of Bt90,000 to Bt100,000 per sqm. The smaller the unit, the easier the sale.

According to the research, there are 4 categories of buyers – those who prefer high quality products and projects such as properties in Phuket, buyers who are retirees and want medium products and more entertainment such as property in Pattaya, buyers who want pleasant scenery, cleanliness and a calm area such as Hua Hin.

This group has a budget not more than Bt10 million. Most of them are from Scandinavian countries, Hong Kong, Singapore and expatriates. The fourth category is those who would like to invest in Bangkok area.

There were many new projects launched in 2008 in Hua Hin, Chaam, the Eastern Seaboard, Rayong and Bangkok.

It was concluded that the takeup rate for the year was higher than supply. (For example, Bangkok was 24 per cent higher.) But the second and third quarters saw declines due to the political crisis and global economy.

The major factor influencing Thailand’s property market was political uncertainty, which caused a lack of confidence.

The global economic downturn had an effect on foreign buyers, who lost money in shares and stocks and were struggling with their own countries’ downturns. Foreign buyers like Europeans, other Southeast Asians, Americans and Scandinavians who would otherwise like to buy or invest hesitated to do so.

The outlook for the property market in 2009 is difficult to predict. Normally, the first quarter is a good guide to how the other quarters will turn out.

If the new government runs smoothly and there are no political demonstrations the property market should revive and Thai property will once again be a good source of revenue.

About the author

Somluck Srimalee Somluck Srimalee
Somluck Srimalee is a journalist with The Nation, Bangkok's independent English language newspaper and specialises in the property and real estate sectors.
Other posts by Somluck Srimalee ( 62 )
Website: http://www.nationmultimedia.com

One Comment on “CBD area and proximity to BTS favoured by buyers”

  • Real Estate Seeker
    9 February, 2009, 9:04

    Hopefully, the economic world can bounce back from the recession as soon as possible. The global financial crisis has done too much damage already.

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