Strong demand boosts Thong Lor condo prices, rental rates

The research shows the locale’s condominium market boasts take-up rates in the range of 70-100 per cent, while prices have risen by 27 per cent over a five-year period. 

Apartments are enjoying similar boosts, with land prices rising by up to 22 per cent over the past two to three years to reach Bt1.3 million per square wah (4 square metres).

The company’s managing director, Poomipak Julmanichoti, said the study had found that the Thong Lor (Sukhumvit 55) area “represents a property treasure trove that has demonstrated consistently outstanding growth rates”. 

As a centre of business and leisure that perfectly suits the modern lifestyle, especially since the opening of the BTS Skytrain station, Thong Lor is now a superb location with a massive range of transportation connections that link it to nearby side roads, such as Sukhumvit 49, 51, 53 and 63 (Ekamai), as well as the major New Phetchaburi Road, he said.

While Thong Lor itself is essentially a short side road that spans just 2 to 3 kilometres, land prices in the Sukhumvit-Thong Lor-Ekamai stretch have skyrocketed over the past two to three years, going up by 22 per cent from Bt900,000 per square wah in 2012. 

A recently closed deal for a plot of Thong Lor land close to the main road was valued at Bt1.2 million-Bt1.3 million per square wah, thanks to the location’s excellent surroundings, which include a multitude of international restaurants and well-frequented community malls that continue to attract locals and tourists alike.

Meanwhile, condominium prices in Thong Lor are growing at a faster rate than in nearby side roads, and these projects in the prime central zone are generating more interest compared to projects located closer to the BTS station, the Plus Property survey found. 

Prices here have risen as high as Bt177,000 per square metre, with an entire project achieving 100-per-cent sell-through in 2012.

 

Rental hotspot

Additionally, Thong Lor is a great hotspot for residential property rentals thanks to constantly high demand, said Poomipak. 

The area’s 2,429 serviced and non-serviced apartment units enjoy an average annual occupancy rate of 96 per cent, with prices between Bt800 and Bt1,000 per square metre. 

This has led to greater demand for residential property among those looking to invest for future renting. 

With such strong interest, condominium prices in Thong Lor and surrounding side roads have risen to an average of Bt131,641 per square metre – up 27 per cent in five years. 

For projects situated in the middle of the side road and directly adjacent to Thong Lor, the average price is approaching Bt190,000 per square metre. 

With strong demand, resale prices are averaging Bt159,701 per square, rising to Bt200,000 for high-end projects in the prime central zone.

The supply of new condominium units in the area has been outpaced by demand due to land prices and scarcity, said the managing director. 

Businesses have taken up many plots of land for commercial developments, and residential developers are forced to choose nearby sites for their projects instead, the research found.

However, proximity to Thong Lor remains a strong selling point, and the high demand is evident with average condominium take-up rates varying between 70 per cent and 100 per cent in this area.

“With interest from actual residential buyers and investors still at a high level, ongoing development of new community malls and the upcoming Skytrain Grey Line, we expect the Thong Lor area to enjoy greatly increased demand in the future,” he added.