For tourists, they prefer short-term accommodations such as Sukhumvit 19 hotel but for serious investors, purchasers and foreigners hoping to purchase another real estate investment, there is still a high demand for low-rise condominiums within the Sukhumvit area. According to developers, the main reason for this is that the prices of low-rise units are far tempting compared to high-rise condo units.
The chief executive officer of Habitat Group, a residential developer, Chanin Vanijwongse, said that the prices of the units that belong in low-rise condominiums are much affordable despite the fact that they are just launched into the market. Looking at the prices of high-rise condominium units, the difference in prices might be blamed on the costs of land.
Mr. Chanin said that high-rise condominiums need larger plots of land for constructions which means that the costs of the land are also more expensive. Furthermore, the plots of land that were dedicated for high rise buildings are usually located in the main roads of Sukhumvit where the alleys are much wider.
He added that the plots of land that is located on the main road starting at Nana skytrain station going to the Skytrain stations in Thong Lor have an average price of 2 million baht for every square wah.
In the end, the prices of the newly introduced condo units constructed within these plots have a starting price of between 250,000 and 350,000 baht for every square metre. Plots that are located on Sois are considerably much cheaper thus the prices of the units when listed for sale are also comparably lower. When it comes to construction costs, low-rise are lower compared to high-rise buildings.
According to a market research conducted by Habitat, the average condo unit price for every square metre around the Asok skytrain station is 271,000 baht. Those located close to the Phrom Phong station has an asking price of 270,000 baht for every square metre while those within the vicinity of Nana station has an average price of 244,000 baht.
At the end of the day, the demand remains strong for low-rise buildings and accommodations such as Sukhumvit 19 hotel also continues to have a high booking rate from tourists both locally and internationally.