Condominium Market in Bearing Area and Potential for Expansion


Mr. Phanom Kanjanathiemthao, Managing Director, Knight Frank Thailand Co., Ltd., said that the development of condominiums in the outer Sukhumvit area of Bearing has potential for expansion and growth. It fulfills the needs of both professionals working in the city as well as those working in the Samut Prakarn area.

Specifically, the area benefits from:

  1.    Advantages of the location such as the Green Line BTS train, which connects to the important business and commercial centres of Sukhumvit, Ploenchit, Silom and Siam. This helps working professionals reach their work places and key shopping areas in Thonglor and Siam quickly and conveniently in just 15 to 25 minutes from Bearing station without having to change trains. At the same time, the extension of the Green Line that will connect with Samut Prakarn to Bang Poo will provide convenience for the people who work in the industrial area of Bang Poo.
  2.    Cost of the land. The important consideration for project development is the area’s low cost of land. The prices are still relatively affordable, which makes the condominium’s sales prices not too high. Prices in the area are around 1.5 to 3.5 million baht per unit; to compare, new condos, located from Bangna to Asoke that are around the train station, with a 5 to 2.5 million baht price tag would be impossible to find. At the price point, monthly installments are around ten thousand-some baht – which meets the financial needs of office workers in the city centre.
  3.    The area is already developed, with complete public utilities and services. There are also several commercial development projects in the vicinity such as BITEC exhibition hall, Bhiraj Tower office building, and the huge Bangkok Mall. The latter is a mixed-use complex developed by The Mall, located at the intersection of Bangna-Trat and Sukhumvit on over 100 rai of land, which encompasses a shopping mall, hotel and serviced apartments; construction is scheduled to begin in 2018.
  4.    Good return on investment, with low initial investment. Each unit cost is not high and rental yields fall between 5% to 6.5%, depending on the project. For low-rise condo projects, a one-bedroom of 28 to 30 square metres in size, the price is around 2 to 2.3 million baht and the rental yield would be around 10,000 to 12,000 baht per month. For high-rise condo projects, units of the same size are priced between 2.5 and 2.8 million baht; their rental yield would be approximately 13,000 to 15,000 baht per month. Renters are comprised of both Thai and foreigners, especially Chinese and Koreans who work in factories in Samut Prakarn. Additionally, Bearing has several international schools such as St. Andrews International School and Bangkok Patana International School.

Graph 1 : Supply and Demand and Sale Rate of Condominiums in Bangna-Bearing-Samrong Area


Supply and Demand and Sale Rate of Condominium in Bearing Station Area



Source: Knight Frank Thailand

From market research conducted by Knight Frank Thailand, concerning condominiums in the Bangna-Bearing-Samrong area, there has been an accumulated supply from 2012 to the first half of 2017 of 12,417 units. There are currently 3,343 units available for sale, which reflects a sales rate of 73%. There has been steady growth since 2015, which marks the year with the most new supply at about 4,300 units. We believe the absorption rate in this area will continue. At the same time, for condos located around the Bearing station area, at the end of the 2nd quarter of 2017, there was a high sales rate of up to 83%. The accumulated supply was 6,430 units; at present, there are just 1,160 units available for sale – this reflects the highest sales rate in a 5-year time frame. Bearing appears to be an area that has become increasingly popular, with sales rates over 70% in 5 years.

Graph 2 : Condominium Supply in Bangna-Bearing-Samrong Area by Building Type

คอนโดแบริ่งยอดขายพุ่ง_Artboard 62 copy

Condominium Supply in Bearing Station Area by Building Type

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Source: Knight Frank Thailand

From research, it was found that condominiums in the Bangna-Bearing-Samrong Stations, for the most part, are the low-rise type at 63% of the market (7,861 units). Meanwhile, high-rise units comprise 4,556 units or 37% of the market. However, if we only look at the Bearing Station area, we find that high-rise condos only comprise 8% or 545 units; these are from the KnightBridge and The Gallery Bearing projects. High-rise condos in this area also enjoy a 99% sales rate, with just a few units remaining as they sales have been going on for 3 to 4 years already. Research also revealed that condominiums in this area, on the whole, are located in Soi LaSalle or Sukhumvit 105, followed by Soi Bearing 107, which makes it not possible for high-rise buildings to be erected. The supply of high-rise condos in this area is limited, despite the high demand from renters and buyers who wish to occupy the units themselves. High-rise condos have better, and often unencumbered views; they are also easier to rent out as they have more amenities and common facilities.

Graph 3 : Average Sales Price per Sq.M. of Condominiums in Bangna-Bearing-Samrong Area

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Source: Knight Frank Thailand

At present, it is found that the average sales price of low-rise condominiums in sois in the Bangna-Bearing-Samrong area is around 70,000 baht per square metre.  For high-rise units in sois, the price is roughly 28% higher at 90,000 baht per square metre. The price of high-rise condominiums on Sukhumvit Road commands the highest price of 110,000 baht per square metre, which is 28% higher than high-rise condominiums in the sois. There are no low-rise condominiums on Sukhumvit Road.

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คอนโดราม, Niche MONO รามคำแหง