Plus Proposes 6 Locations for Detached Houses Responding to Real Demand
20 Jul 2020
plus news and update
Notes momentum in the horizontal market and sustained land price growth in 2020
- Plus Property reveals findings from a survey of prospective locations for residential properties in the new era that cater to real demand, which has continued to grow even during economic crises.
- Finds 6 distinguished locations for the detached houses segment: Bang Na, Rama 2, Rangsit-Lam Luk Ka, Bang Yai, Chaengwatthana-Pak Kret, Phattanakan-Prawet. All locations were conducive to living and commuting and are served by convenient transport routes and mass rapid transit; as a result, land prices continued to appreciate.
Ms. Suwannee Mahanarongchai, Deputy Managing Director, Business Strategies and Asset Management at Plus Property, the full-service professional property and facility management agency, revealed that PLUS’s analysis of consumer behavior relating to the selection of residential properties in the aftermath of the COVID-19 outbreak discovered an increased interest in purchasing horizontal properties among the family starters customer group.
Customers were also found to have increased the importance they placed in functions and designs that lend toward the environment, safety and hygiene and which serve the requirements of ‘New Normal’ living. PLUS’s research and development division conducted a survey of residential localities in Bangkok and its surrounds and discovered 6 localities that possessed the capacity to become new residential hubs. All six had transportation links that facilitate travel into downtown as well as adequate amenities, including electric trains, expressways and large shopping malls. The 6 locations are:
1. Bang Na (Bang Sao Thong – Bang Phli – Bang Bo) is considered a golden residential location for the future. The area has a complete range of amenities that include international schools and large mixed-use developments such as Mega City Bangna and Bangkok Mall. Commutes to downtown may be achieved via several transportation channels – Bang Na – Chon Buri Expy that links with the Chaloem Maha Nakhon expressway, the motorway, and the Yellow Line MRT running along a stretch of Bang Na-Trat Rd. that is slated to commence service by the end of 2021.
The Bang Na-Suvarnabhumi light rail that links to the BTS’s Light Green Line and the high-speed train link between U-Tapao, Suvarnabhumi and Don Mueang airports are also expected to benefit the Bang Na locality in the future.
Said factors have driven up interest for the location and prompted vigorous launching of new residential developments; this is especially true of detached homes priced 3-5 million baht. Prices of land in Bang Sao Thong and Bang Bo have a tendency to grow by an average of 6.73% each year, based on land prices between 2016 and 2019. The average land price was 50,000 baht per square wa.
2. Rama 2 (Bang Khun Thian – Samut Sakhon) area is currently the site of a number of transportation improvement projects. It is witnessing the construction of the elevated road that runs above Bang Khun Thian – Pak Tho Intercity Motorway and in the future will be serviced by the Tao Poon-Rat Burana Purple Line rapid transit service. The arrival of the Purple Line will create a new commuting link between the Phra Nakhon, Thon Buri and Samut Prakan regions and this prospect has resulted in the rise of many new property developments in the Rama 2 area.
Said properties are priced within the easily accessible range of 3-5 million baht. The price of land in the Rama 2 area grew uninterrupted during 2016-2019 and currently averages out at 44,000 baht per square wa. The locality’s average land price growth of 9.77% per year is higher than in many areas.
3. Rangsit-Lam Luk Ka is another residential area with good prospects, owing to the fact that it will be served by the extension of the BTS Green Line's Northern Extension that will commence service to Khu Khot station in 2021, and by the SRT Bang Sue-Rangsit Dark Red Line that will eventually reach as far as Thammasat University Rangsit Campus.
Windfall from these two mass rapid transit lines meant that this location has attracted great interest from people looking to buy homes. There remains an abundance of supply within the 3-5 million baht bracket, which is considered very appealing for a location that will be served in the future by a prime electric train line such as the Light Green line.
Land prices here were found to have risen by more than 10%. It was also found that prices of land near Khu Khot station have been growing by an average of 7.45% per annum, which is higher than the average growth in the overall market. The average land price stood at 71,000 baht per square wa.
The Rangsit area is generally devoid of detached homes priced more than 10 million baht; more than half of the units are priced below 5 million baht, which is the best-selling range that achieves a sales figure of 75%.
4. Bang Yai is a location that stands out due to it being served by several main arteries that connect to the inner city, namely Kanchanaphisek Road, Rattanathibet Road, Bang Bua Thong-Suphan Buri Road, Chaiyaphruek Road and Bang Kruai – Sai Noi Road.
The area is served by the MRT Purple Line and in the future will have access to the Bang Yai – Kanchanaburi motorway. Large shopping malls are also present in the area.
The average land price for this location stands at 53,250 baht per square wa. Land in Bang Yai has continually garnered high demand and prices have been growing up 7-10% per year. The best-selling detached houses were priced within the 3-5 million baht range, having achieved sales of 75%. Houses within this locale were generally priced lower than 7 million baht. Projects with detached houses in the range of 5-7 million baht were able to close sales very quickly; such projects typically were able to sell between 4-5 units per month.
5. Chaeng Watthana-Pak Kret has long been a location that accommodated the residential needs of urban dwellers. This outgrowth of Bangkok benefits from convenient transportation links such as the Si Rat Expressway and the upcoming MRT Pink Line that will link to the Light Green Line at Wat Phra Sri Mahathat station; service on the Pink Line is scheduled to commence in late 2021.
The area possesses an environment that is fully conducive to living, with amenities such as a convention and exhibition centre, a sports complex, hospitals, schools, parks and a government complex. Owing to the aforementioned, land prices in this locale stands at 75,800 baht per square wa; rising by an average of 10.06% in 2016-2019.
Here, detached houses priced 5-7 million baht receive a high response rate and sales closure stood at 51%. The second most prominent price range is 7-10 million baht, where 2-3 units are typically sold per month at each project.
6. Phatthanakan-Prawet is a location where demand for residential properties has substantially increased. This can be attributed to the availability of large green spaces (Suan Luang Rama IX Park, Nongbon Water Sports Center as well as easy access to central business districts and Suvarnabhumi airport via multiple roads and the Airport Rail Link.
Condominiums, townhomes and detached houses all prove popular in this location. The location will be served by the Yellow Line mass rapid transit service when it opens in 2021. The area is particularly attractive because the Yellow Line has linkages with the Light Green Line, the Blue Line and the Orange Line.
The average land price stood at 70,667 baht per square wa and has been rising by an average of 5.54% per year. The most popular developments were ones with properties priced in the 5-7 million baht range, followed by ones with 10-20 million baht price tags.
“The market of horizontal residential properties accommodates real demand and up until now has been growing continuously. This market typically sees very little speculation and is therefore not among the major groups to receive impact from various crises. This has been a year where property developers have issued greater than normal amounts of promotional campaigns and benefits for buyers.
Coupled with the fact that interests remain historically low, this should provide a stimulus for the real demand group to make housing purchase decisions at this time. Nonetheless, property developers must give good consideration to project development in order to appropriately respond to the demand of the market and keep a balance between supply and demand”, said Suwannee.
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