Plus Notes Prospects for Bang Na-Tra, Finds High Demand for Detached Homes First-half sales of 88%
19 Nov 2019
plus news and update
Plus Property, the full-service professional property and facility management agency, takes note of a ‘golden location’ that spans the Bang Phli, Bang Sao Thong and Bang Bo areas on Bang Na-Trad Rd, especially the stretch from the intersection on Kanchanaphisek Rd to Sriwari Noi Rd.
The market for detached homes remains energised, with the sales ration being as high as 88% in the first half of 2019 and outperforming Bangkok’s average sales figure of 83%. Although 1,200-1,800 units of new supply has been entering the market each year, demand has been rising at a matching pace. Demand was especially high for homes at the 5-7 million baht price level.
Convenient transportation linkages to Chonburi and the expressway leading into downtown Bangkok are determined to be factors supporting the vitalisation of the area. The potentially upcoming Bang Na-Suvarnabhumi light rail service and the zone’s possession of a multitude of international schools, hospitals and shopping centre megaprojects all lend towards family life.
Ms. Suwannee Mahanarongchai, Deputy Managing Director, Business Strategies and Asset Management, Plus Property Company Limited, the full-service professional property and facility management agency, revealed that despite the overall real estate scene in 2019 not being as bright as in the previous year, the market for detached homes – known to be a market which accommodates real demand for residency – continues to experience an appealing level of growth.
At certain locations where growth had been observed, especially the locations on Bang Na-Trad Rd. and nearby, demand was noticeably absorbing up supply. As a result, this area had come to sport demand figures that were higher than the average for Bangkok. Examples include the Bang Phli, Bang Sao Thong and Bang Bo localities.
During the first half of 2019, the supply of detached homes on offer in these localities amounted to some 6,500 units. The sales ratio stood at 88% of this figure. The sales ratio for detached homes in this combined area stood higher than 80% over the previous three years. However, sales during the first half of 2019 was remarkable, as the figure was higher than the average for Bangkok which stood at 83%. Said figures reflect how this area has risen to become an appealing choice of a location.
It has also been observed that 1,200 - 1800 units of new supply enters the market for this particular zone each year. New demand has been entering the market at a matching rate each year, thereby constituting a balanced demand.
The absorption rate for the first half of the year stood at 3.68 houses per month, which was higher than the market's overall average rate of 2.82 homes per month. For the aforementioned localities, the most popular price level of detached homes was the 5-7 million baht level. There was roughly 1800 units of supply from property development projects in the first half of 2019.
When comparison was made to other price levels within the same localities, the 5-7 million baht price level displayed the most exemplary sales ratio as well as absorption rate. The sales ratio stood at 95% while the absorption rate stood at 5.41 houses per month. This absorption rate was higher than the average for all the localities within Bangkok at the same price level, where absorption was 3.33 houses per month on average.
“The Bangna-Trad Rd. area and nearby sites that are served by minor roads, such as the Sriwari Noi (Bangna-Trad kilometre marker 18) area, remain worthy of note. New investments into real estate projects have been observed and current transportation options are convenient.
The area will also benefit from the development of transportation networks servicing Suvarnabhumi Airport. One such network is the Bang Na-Suvarnabhumi light rail service that will operate on Bang Na-Trad Rd. and link the Light Green BTS line with Suvarnabhumi Airport. If the project receives approval after being assessed for its environmental impact, construction is expected to take 3 years.
Furthermore, many large, mixed-use property projects are being developed. Shopping spots for brand-name products include Central Village Luxury Outlet, Market Village Suvarnabhumi and King Power Sriwaree. The area is also served by many golf courses and hospitals. Bang Na-Trad has become greatly vitalised compared to the past, when residents of this area needed to travel downtown for work or other activities such as shopping.
The Bang Na-Trad area is also well-suited for families, owing to a concentration of international schools. The area is situated between Bangkok and the industrial-tourism city of Chonburi, and therefore residents are able to easily travel to places. Inner Bangkok can be reached via the Chaloem Maha Nakhon Expressway and outbound journeys to other provinces are just as convenient,” said Suwannee.
Plus Property is a full-service professional real estate agency that provides comprehensive assistance in reselling/letting properties and the purchasing of second-hand condominium units. With more than 20 years of experience, PLUS’s team of quality professionals manages residential and commercial properties and also manages projects’ sales and marketing, heeding to all types of demand. For additional information about our services, call 02 688 7555, or click here.
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