Resale properties rising as people look for second home

Ayut, 35, booked a Bt5 million one-bedroom condominium under construction on Sukhumvit Road in 2012 and before the project transferred early this year, he sold it for Bt6 million.

“This is great for me. Only two years and my condo’s price went up 20 per cent,” he said last week.

Pranee, 34, won the bidding on a foreclosed townhouse on Rattanathibeth Road in Nonthaburi for Bt700,000 from the Legal Execution Department in 2010 and spent Bt500,000 to fix it up. This year, she could turn it over for Bt2 million, a whopping increase of 66 per cent in just four years.

“When buying a resale residence, normally you will get a price that is 20-30 per cent lower than new residential projects depending on how much work the property looks like it needs. 

“If bought from the Legal Execution Department, you will get a discount of up to 70 per cent from the present value. This is good for homebuyers or investors to buy for occupancy or investment if they have the budget to renovate,” a property expert said.

Resale condos close to mass transit system are especially popular, said Pumipat Sinacharoen, managing director of Bangkok City Smart Co, a residential-property agency.

“Although resale prices have risen 10-20 per cent, new condo projects under construction are priced even higher by more than 20 per cent. That’s why the demand to buy resale condos is showing strong growth,” he said.

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

“Most of those now buying a condo, be it a new one or a resale unit, need a place to be their second home,” he said.

According to a survey by The Nation early last week, the resale prices of condos located in the Sukhumvit, Phloenchit, Sathorn, Pathumwan and Thonglor neighbourhoods have surged by 30-50 per cent over their advertised prices when new.

Most of them are ready-to-move-in condo projects that came on the market from 2006-09.

The Address Chidlom, which had a pre-sale price of Bt102,000 per square metre in 2007, is now offering resale prices of Bt135,000-Bt150,000, up 32-47 per cent. The Park Chidlom is up 100-110 per cent from Bt95,000-Bt110,000 to Bt200,000- Bt220,000.

The Met on Sathorn Road has appreciated 19 per cent from Bt128,000 to Bt153,000.

Condo projects that had offered pre-sale prices below Bt100,000 per square metre have now shot up to the six-figure mark. The Alcove Thonglor on Thonglor Soi 10 could be bought for Bt87,000 during pre-sales, but now requires Bt115,000 for a resale unit, up 32 per cent. 

Baan Sirirudee at Soi Rumrudee had presale prices of Bt85,000-Bt110,000 per square metre, depending on the floor. The resale prices of this project are now Bt134,000-Bt150,000, up 57 per cent.

Condo One X on Sukhumvit Soi 26 had a presale price of Bt72,000-Bt90,000 per square metre but now sells used for Bt100,000-Bt130,000, up 38 per cent.

In the Rama III-Ratchaburana area, resale prices of riverside condos have more than doubled in recent years, thanks to rising demand for homes located close to the Chao Phraya River.

Resale prices for riverside condos in projects launched over the past five years now average Bt90,000 per square metre, against an average of Bt40,000 at the time of reservation.

The River condo project by Raimon Land currently sells at Bt140,000 per square metre, versus the presale price tag of Bt90,000 in 2007.

The Pano by Krungthep Land offers units at Bt120,000 per square metre, up 20 per cent from Bt100,000 when the project was launched in 2011.

Kana Riverfront Rama 3, introduced by Kanaphaya Property early this year at Bt175,000 per square metre, now fetches Bt190,000.

Chapter One Ratchburana by Pruksa Real Estate is now on offer for Bt90,000 per square metre, more than double the presale level of Bt40,000 last year

“Limited land supply close to the river drives residential prices near the Chao Phraya, with prices rising in line with growing demand,” said Prasert Taedullayasatit, Pruksa’s managing director for condos, who is also president of the Thai Condominium Association. Although resale prices are higher than their presale prices, they are still lower than new projects rising in the same location, so this is good choice for homebuyers or investors now searching for value, he said.