Developers sharpen focus on Thonglor to meet demand for luxury projects 

A survey by The Nation early this week found that listed and non-listed residential developers were launching luxury projects with this value, thanks largely to strong demand from foreign buyers – especially those from Japan, China, Hong Kong and Singapore.
For example, Sansiri has introduced its Bt4-billion fashion-condominium project, Khun by Yoo inspired by Starck, which comprises 148 units costing Bt15 million apiece, or Bt350,000 per square metre.
Pruksa Real Estate is introducing its latest luxury condominium, The Reserve Thonglor, which is worth Bt1.7 billion with prices starting from Bt10 million per unit.
Meanwhile, Singha Estate and the Hongkong Land Group have signed a shareholders’ agreement to form a joint venture, S36 Property, to develop a super-luxury condominium project on a 2-rai (0.3 hectare) plot on the corner of Sukhumvit 36 next to Thonglor BTS Station.
The Bt6-billion joint project comprises 400 units, with an initial offer price of Bt15 million per unit.
Land and Houses is launching its latest condominium project, the Bt4-billion Bangkok Thonglor, with a total of 148 units at a starting price of Bt18 million per unit, or Bt350,000 per square metre.
W-Shinwa – a joint venture between Woraluk Group and Japan-based Shinwa Group – is introducing a luxury eight-storey condominium project, the Runesu Thonglor 5, worth Bt1.2 billion.
This year’s burst of new condominium launches on and around Thonglor builds on the area’s recent popularity for those seeking high-rise accommodation, as the location already boasts 28 projects worth over Bt80 billion combined that have been launched during the past five years.
The 28 projects contain around 5,600 condo units.
Condominium prices have also risen sharply during the period, doubling from Bt120,000-Bt150,000 per square metre five years ago to more than Bt250,000.
Among the projects launched back in 2011-2012 are the Ivy Thonglor, which had a starting price of Bt121,900 per square metre, the Vtara 36 (Bt125,000 per square metre) and the Urbitia Thonglor (Bt139,000 per square metre).
“We decided to develop our first condominium project at Thonglor after seeing strong demand from Japanese buyers already staying in this location,” W-Shinwa co-chief executive officer Tomoyasu Yamabe recently told The Nation.
Thonglor is a prime residential location because it has so many lifestyle services and amenities, such as restaurants, shopping centres and hospitality venues, he said, adding that the area also has both day-life and night-life as it is located close to mass transit, making it very convenient for people travelling between their home and place of work.
“We [Shinwa Group] took a long time surveying the situation before deciding to expand our investment in Thailand, especially in the Thonglor area,” the co-CEO said.
Meanwhile, Sansiri president Srettha Thavisin said Thonglor was a good residential location for both Thais and foreigners who work in Bangkok’s central business districts.
“Following our survey and after expanding our market overseas, we were confident that Thonglor was the destination for us, especially for luxury residences, and as a result we launched our luxury fashion-condominium project, Khun by Yoo, to the market,” he said.
Naporn Soonthornchitcharoen, president of Land & Houses, commented: “We decided to launch our new luxury condominium, The Bangkok Sukhumvit 38, with a starting price of more than Bt300,000 per square metre after witnessing strong demand in this location.”
According to a survey by real-estate agency Plus Property, a subsidiary of Sansiri, demand for condominium units along Thonglor remains strong, but less than 5 per cent of the available property remains for sale. 
A lack of new properties in the area, combined with popular shops and eateries and convenient transportation links, has contributed to the sharp increase in resale values, the research said.
One of the main reasons demand on Thonglor is high is the limited number of properties available.
Plus Property noted that condominiums in the area had seen average price increases of 13 per cent annually during the past eight years. 
 
Robust rental market
Thonglor’s rental market is also robust, with annual returns of 5 per cent being recorded. 
Local properties are able to meet the needs of Thai and expatriate tenants, especially Japanese, American and South Korean nationals, the company found.
Anukul Ratpitaksanti, deputy managing director of Plus Property, said demand for super-luxury properties close to the Thonglor BTS Station was still high. 
The research also revealed the supply of available high-rise units in Thonglor as being 1,800, with only 35 units remaining unsold. 
The resale price of condominiums has increased by as much as 80 per cent since the initial launch of properties including the Sansiri Quattro and HQ Thonglor projects.
Thonglor’s rental market is seeing steady demand from Japanese tenants, who account for 70 per cent of all rented condo properties, Plus Property said in its research. 
The most popular units are one-bedroom condos with 50-55 square metres of space, which fetch a rental price of Bt50,000-Bt60,000 per month, the agency said.
Nexus Property Market, another real-estate agency, forecasts that dem  and for condominiums priced between Bt200,000 and Bt360,000 per square metre in the Thonglor area will remain still strong, due to the limited availability of land for new development.
Moreover, the location also serves demand from both buy-for-stay purchasers and investors who buy for rental purposes, as demand for rented accommodation is still strong among foreigners, the company said.
 
Other projects
Besides the condominium projects being launched in area, hotels, apartments and serviced apartments are also opening in and around Thonglor, according to a survey by Jones Lang LaSalle (Thailand).
Some of the key deals recorded over the past year across the city include the sales of Eight Thonglor – including the former Pan Pacific Residences, since rebranded as Akyra Thonglor – the Liberty Garden Hotel, and Park 24 Condominium in Sukhumvit, which will be rebranded and managed as serviced apartments by Ascott, the agency said.
Following the strong demand for luxury residential projects in the Thonglor area, land prices have risen from an average of Bt500,000 per square wah (4 square metres) five years ago to between Bt1 million and Bt2 million per square wah today, according to Plus Property’s survey.