Bearing, Samrong areas have potential for real estate expansion
Phanom Kanjanathiemthao, managing director of Knight Frank Thailand, said the development of residential condominiums in the outer Sukhumvit areas of Bearing and Samrong had the potential to expand, to meet the needs of people working in both Bangkok and Samut Prakan.
The areas will benefit from the following factors.
The first advantage is the location and the cost of land. Specifically, the location benefits from the extension of the Green Line of the BTS urban rail system, which is currently under construction and will extend to Praeksa Road in Samut Prakan.
Second, the area is already developed, with complete utilities and public services. Many commercial projects have been developed; these include Samrong Market, Imperial Samrong Shopping Centre and the Bangkok International Trade and Exhibition Centre (Bitec).
Third, the area boasts close proximity to workplaces such as Poochaosamingprai Road, Theparak Road and Samut Prakan – all important industrial areas. Samrong has become the central hub connecting areas between the commercial and industrial sectors, which makes it suitable as a residential area.
The expansion of the condominium market in this area (between Bang Na and Samut Prakan) saw the supply increase significantly in 2014 and 2015 (to 6,642 and 7,292 units respectively). In 2013, construction of the Green Line extension from Bearing to Samut Prakan began.
Last year, the new supply was merely 3,836 units, and in the first quarter of 2017, the new supply was only 972 units, in line with overall market conditions.
As for the demand, the rate of purchase of units in this area was around 3,500 to 4,500 units per year.
Assessing the overall market, it is found that the market remains in good shape. The supply adaptation is in line with market demand.
