Demand up for resale residences

The demand to buy resale residences, especially condominiums located close to central business districts (CBDs), is continuing to grow despite a 10-20 per cent increase in their prices over the pre-sale price.

The prices of new residences are up 3-5 per cent amid increase in construction, energy, and labour costs.

According to a survey by The Nation early this week, the resale price of condominiums located on Sukhumvit, Phloenchit, Sathorn, Pathumwan, and Thonglor have risen by 10-20 per cent over their pre-sale price.

Most of them are ready-to-stay condominium projects that were open to presales between 2006 and 2009. 

The Address Chidlom, which had a pre-sale price of Bt102,000 per square metre in 2007, is now offering a resale price of Bt120,000 and Bt130,000 per square metre, up 18 per cent. The Park Chidlom that had a presale price in the range of Bt95,000-Bt110,000 per square metre has a resale price of Bt140,000- Bt160,000 per square metre, up 45 per cent. 

The Met on Sathorn Road has gone up by 9 per cent, from the average price of Bt128,000 per square metre to Bt140,000 per square metre. (see graphic)

Meanwhile, prices of condominium projects that earlier offered pre-sale price below Bt100,000 per square metre have now shot up to the six-figure mark. The Alcove Thonglor on Soi 10 had a pre-sale price of Bt87,000 per square metre but now offers a resale price of Bt115,000 per square metre, up 32 per cent. Baan Sirirudee at Soi Rumrudee had a presale price of Bt85,000-Bt110,000 per square metre, depending on the floor. The resale price of this project is now between Bt100,000 and Bt130,000 per square metre, up 18 per cent.

Condo One X on Sukhumvit soi 26 had a presale price of between Bt72,000 and Bt90,000 per square metre but now has a resale price of Bt86,000-Bt120,000 per square metre, up 19 per cent. (see graphic)

Meanwhile, the resale price of condominium projects at tourist destinations such as Hua Hin and Pattaya are also rising, between 10 and 20 per cent. This follows the demand to buy a second home by locals after the experience of last year’s floods.

Hua Hin Blue Lagoon had a presale price of Bt46,000 per square metre but now offers a resale price of Bt59,333 per square metre, up 27 per cent. Zire Wong Amart offered a pre-sale price of Bt94,400 per square metre but the resale price has gone up to Bt112,000 per square metre, up 18 per cent.

Pumiat Sinacharoen, managing director of Bangkok City Smart Co, a residential-property agency, said the resale price of a condominium located close to mass transit system has strong potential for growth. 

“Although resale price has risen between 10 and 20 per cent but new condominium projects, under construction are priced even higher than resale residences by more than 20 per cent. That’s why the demand to buy resale condominium is showing strong growth,” he said. 

He added that demand for condos has grown much higher than that for low-rise residences this year because the purpose of the purchase has changed from buying for investment or speculation to having a back-up in case of calamities like the floods that hit their homes last year.

“Most of those now buying a condo, whether a new one or a resale unit, need a property to be their second home," Pumipat said.

However, the demand for low-rise residences such as detached homes, townhouses and duplexes will continue growing this year, especially in locations that are not prone to flooding, he said.

Meanwhile, the demand to buy residential projects in Hua Hin and Pattaya is seeing strong growth from domestic buyers as they want to buy a second home, Risinee Sarikaputra, associate director of the research and valuation department of Knight Frank Thailand, said.

She added that resale prices at locations close to the beach had increased about 20 per cent over the presale price.