Most foreign purchasers’ activities are concentrated in Sukhumvit, the longest road in Thailand. Boutique property agency, led by its MD, Pierre Leung examines why.
Sukhumvit leads the pack by enormous margins. This incredibly “skewed” result in favour of the BTS Stations between Nana to On Nut was largely predicted beforehand by us.
The simple reason being that a large proportion of property listings advertised online by us are usually located in Sukhumvit. On top of this, Sukhumvit is represented by a total of 7 BTS Stations.
This outnumbers the next largest district Rama
9- Ratchada and Ploenchit-Wireless that were
respectively represented by 4 BTS/MRT Stations.
During our study, this “statistical skew” in favour of Sukhumvit meant that the 7 BTS Stations (Nana to On Nut) were the areas that generated the most rental clients every quarter in 2018.
However, these statistical advantages only partly explain the district’s overwhelming popularity.
The area is a Thai and Expatriate favourite with a balanced mix of business, leisure and residential neighbourhoods.
The popularity of Sukhumvit can usually be attributed to 3 factors:
1. LIFESTYLE AND CONVENIENCE
The area offers an extremely balanced lifestyle offering a combination of business (e.g. Asoke) and leisure (e.g. Thonglor or Phrom Phong) hotspots complemented by good-quality housing options.
On top of this, all the neighbourhoods are well- connected with the BTS Skytrain system. Mass transit allows residents to shuttle for work or leisure to different areas of Bangkok in a few minutes.
2. CHOICE OF HOUSING OPTIONS
Developers have been active in the area, with a wide choice of houses, condos and apartments available to suit the needs of different types of renters.
3. VARIETY OF RENTAL PRICES
Sukhumvit also appeals to a variety of “pockets”, with budget options available in On Nut and more upscale downtown luxury residences advertised in Phrom Phong.
These 3 factors have transformed this section
of Bangkok into one of the most vibrant and cosmopolitan lifestyle hubs in the City with an active rental market available for houses and condos all year round.
THE WINNERS
1. On Nut
The On Nut dominance is unsurprising; this area has rapidly gentrified from a gritty residential suburb into a trendy commuter hub. In terms of renter profile, it tends to attract younger working professionals and young families most of whom work in Sukhumvit’s business hubs (Phrom Phong and Asoke).
Renters are usually attracted to the area because of the affordable rental prices and the good quality condos available near the On Nut BTS Station. Some notable projects by established developers include Ideo Mobi Sukhumvit by Ananda, Rhythm Sukhumvit by AP Thai and the ever popular The Base Sukhumvit 77 by Sansiri.
On top of the rental value offered, On Nut residents benefit from a convenient lifestyle with 2 supermarkets (Big C and Tesco Lotus) both located within 500 meters of the BTS Station. The popularity of the neighbourhood has also spurred the development of new malls such as Century Mall and Habito Community Mall now servicing residents.
On a final note, travel times via BTS from On Nut to Central Bangkok locations such as Asoke is only about 20 minutes making it extremely convenient for commuters.
2. Phra Khanong
Phra Khanong’s appeal lies in its geographical proximity to the Central Business District, as it is only 2 BTS Stations away from Thonglor and only 3 Stations from Asoke. Its favourable location has allowed it to benefit from the natural spillover from both buyers and renters who are unable to afford the pricier neighbourhoods in Central Bangkok.
Like the On Nut neighbourhood, the profile of renters tend to be young working professionals and young families. Phra Khanong offers numerous high-quality projects for renters to select, notably Life 48 by AP, Wyne Sukhumvit and The Line Sukhumvit 71 both developed by Sansiri. Rental rates tend to be great value especially relative to the sky-high rates of the CBD.
An interesting point is unlike its counterpart On Nut, the neighbourhood is still lagging in terms of leisure venues. However, we believe that the area is quickly developing its own character. The Phra Khanong lifestyle now has two new additions, notably leisure hotspots such as the W District (with its popular W Night Market) and Summer Hill community mall.
3. Phrom Phong
Phrom Phong needs little introduction, this prime location is a leisure and retail hotspot that benefits from a luxury and high society image. This desirable image is reinforced by the presence of 2 luxury malls notably Emporium and Emquartier.
The neighbourhood is made up of a collection of interconnected “Sois” (Roads). These intertwining roads are usually peppered with a variety of condos, mini-malls and independent eateries giving the area a unique community charm.
A benefit of living in Phrom Phong is the wide variety of accommodation options available. Being an established section of the CBD, developers have been active in the area, with a range of condos and apartments offered at different price levels, ages and styles.
Finally, Phrom Phong is also gradually transforming into an office hub with notable A-Grade office towers such as Metropolis and Bhiraj Tower.
Interestingly, two unexpected areas in the “Top 5” are Phetchaburi and Ekkamai:
4. PHETCHABURI
Phetchaburi is serviced by an MRT Station and is largely seen as an extension of Asoke. It is popular due to the affordability of its housing options. At present, the area offers potential renters a variety of quality condos that offer both a comfortable and convenient lifestyle.
The area remains largely good value, especially relative to the center of Asoke (closer to Sukhumvit Road). Renters tend to be working professionals, with offices typically based in Asoke or other business centers such as Ploenchit or Pratunam.
The area has experienced a development boom
for several years. This is in large part due to the availability of land plots along Phetchaburi Road which has encouraged several residential and commercial developers to launch projects. Some notable projects include mixed-use Singha Complex on the Phetchaburi Intersection and condominium Ideo Mobi Asoke by Ananda.
5. EKKAMAI
Ekkamai is often seen as the sister neighbourhood of glamourous Thonglor; with many renters often perceiving the area as “Thonglor without the price tag”. In terms of its lifestyle, it has very much the same to offer as its more popular counterpart, with a variety of eateries, bars and coffee shops. Its desirable and appealing lifestyle, is complemented by a peaceful and relaxing environment making it popular with renters.
Despite its convenient geographical location,
the area has not experienced the same level of condominium launches compared to areas such as Phra Khanong or On Nut. However, the existing housing options in the location remain good value, especially compared to its more expensive neighbour Thonglor!
