Condominium development around the Talat Phlu BTS station has been picking up since it opened in 2014. It is one of four BTS stations -- the others are Pho Nimit, Wutthakat and Bang Wa -- that have opened in the past five years as the BTS continues its push west of the Chao Phraya River.
The areas around all four new stations have been on the radar screen of many developers, but Talat Phlu has been the most popular. Condominium launches began to speed up in the area in 2006-07, just before the first BTS station west of the river opened at Krung Thon Buri.
The area around the Talat Phlu BTS is popular for the wide variety of amenities, including The Mall Thapra, one of the largest shopping centres on the west side of the river, many schools, government and private hospitals.
The area is also convenient for driving, as Ratchada-Tha Phra Road, the main road in the area, connects to Kallapapruek Road, providing a link to Ratchapruek and the Outer Ring Road, while Krung Thon Buri Road connects to Sathon Road for those entering the central business district on the east side of the river. Ratchada-Tha Pra Road also links with Taksin Road, and from there drivers can proceed to Rama III and onward to Silom and Sathon or Rama IV roads.
The average take-up rate in the area is high, with most condominium projects sold out or having only a few units left on the market. The total number of units in the area as of January 2019 was 10,517. At some buildings launched in 2006-07, current selling prices are 50-80% higher than their original prices.
However, units in projects launched since the BTS station opened in 2014 are not expected to appreciate in value as much as some of their older peers. This is because their selling prices were already quite high, reflecting the rising cost of land as more developers sought to build once the completion of the station drew near. The newer buildings also face competition from lower-priced developments that were completed earlier.
When condo development began in the area in 2006-07, average selling prices were 45,000 to 60,000 baht per square metre. But prices have climbed rapidly since 2013, especially for units in buildings closest to the new station. One project launched by a listed developer in 2014 had starting prices of nearly 100,000 baht per sq m but sold out quickly. Another new project in 2017 set a record for the area with prices above 120,000 baht per sq m and it too sold out.
The average selling price in the area immediately around Talat Phlu station is 98,000 baht per sq m. Widening the search area sees the average fall because some projects are asking just 60,000 to 80,000 baht per sq m. Most are older buildings completed 6-8 years ago.
The average take-up rate for condo units around Talat Phlu station is now around 95%. But this could slip as a handful of developers are preparing to launch as many as 3,000 more units, some with starting prices higher than 120,000 baht per sq m.
All of the developers planning new projects in the area are listed companies, which tends to inspire greater buyer confidence. Talat Phlu is an area to watch in 2019, when condo market growth overall is expected to slow because of tighter mortgage lending rules and other factors. Developers are looking to concentrate on reasonable sales prices.
Surachet Kongcheep is a veteran local property market expert. He can be reached at surachet.jock@gmail.com