More than 10,000 apartment units in projects worth more than THB10 billion (US$324 million) in Bangkok real estate's prime area between Ploenchit and Sukhumvit soi 55 are driving up competition among property developers.
According to a survey by The Nation last week, both listed and non-listed firms have introduced more than 100 projects since last year and construction will be complete between the end of this year and 2013.
Condominiums along this route are in the price range of THB80,000 to 200,000 (US$2,591 to 6,478) per sqm with the more expensive projects located between the Ploenchit intersection and the top of Sukhumvit Road and prices ranging from THB80,000 to 150,000 (US$ 2,591 to 4,859) can be found between sois 10 and 55.
Noble Development president Thongchai Busrapan said that after bookings for Noble Ploenchit opened from June 19 to 22, the company achieved presales worth THB7.2 billion (US$233.1 million), or half of the total project value of THB14 billion (US$453.3 million).
"Although this location has high competition, our project is freehold, which is difficult to find in this area, where most projects are for long leasehold contracts," he said.
According to a survey by the Real Estate Information Centre, demand in this location is sufficient to absorb the high number of condominium launches as both local and foreign buyers have driven condominium prices 10 to 20% higher than their presale prices, depending on how close they are to the skytrain.
Article courtesy of Asia Property Report