Changes in Bangkok home-buyers' tastes, driven by high cost of gasoline, lead to the emergence of a new city high-rise community.
The number of condominium projects under construction around Sukhumvit, Sathorn and Ratchadaphisek roads in Bangkok, is the indicator of not only a new trend in city living, but also the creation of a new community of condo dwellers clustered around the routes of the Skytrain and the Subway.
Changes in Bangkok home-buyers' tastes, driven by high cost of gasoline, lead to the emergence of a new city high-rise community.This is how the high cost of fuel and transport, is changing Bangkok. The condo buyers seek, first and foremost, to reduce their transport costs. But they haven't forgotten comfort and they're eager to join a new Bangkok lifestyle.
CEO of the biggest property agent in Bangkok, Harrison Ltd., says demand for condominium units in the Sukhumvit, Sathorn and Ratchadaphisek areas has enjoyed strong growth, and most property developers have followed demand by turning away from detached housing and town houses to build condominiums in those areas.
Harrison’s survey showed as many as 20 condominium projects worth up to 15 billion baht were launched in the first six months of the year, offering units priced from 1.5 million baht to 5 million baht and representing 60 percent of all condominium projects in Bangkok. And most of the new projects are focused on the middle- and upper-income markets.
Among these new projects, Asian Property Development has launched ‘The Life’ condominium projects on Sathorn, Ratchadaphisek and Phaholyothin roads. Preuksa Real Estate will build its first city condominium project, ‘The Ivy’, on Ratchadaphisek Road. Woraluk Property is building the ‘Le Lux’ condominium on Sukhumvit Road. And Sansiri has launched its latest project, called ‘Siri’, on Sukhumvit Road. And the list still goes on.
Harrison CEO says that although the projects launched in the first six months of the year will target the middle- and upper-income markets, their main selling point remains their proximity to mass transit systems and the consequent savings in energy costs. He adds that in the first half, growth in total housing sales was less than 5 percent year on year. While condominium market growth in the first half was up 20 percent, because of the big shift in spending away from detached houses, double houses and town houses.
Asian Property Development CEO, whose company's expertise is building city detached-house and town-house projects, says the firm changed to condominiums because of consumer demand. Home-buyers are opting to buy city condominiums because of the transport convenience, plus they are concerned about their quality of life.
Preuksa Real Estate, another property firm with a reputation for building town houses and detached houses, has also diversified into the city condominium market with ‘The Ivy’, which will focus on middle-income earners. Preuksa’s president says the move was made to chase demand. However, the key to success for city condominiums is a location close to mass transit, so Preuksa's first city project is on Ratchadaphisek Road, close to the Subway.
For many property developers, the pursuit of consumer demand has caused sudden changes in normal practice. No more unexpected than the changes emerging in and around Sukhumvit, Sathorn, and Ratchadaphisek roads, where many Bangkokians will settle over the next two years to create a new condominium-based community around the city's mass-transit routes.
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