City condo prices to soar

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Bangkok condominium prices are expected to rise by at least 10% next year, driven by new land appraisal prices that will be revised up by 25% on average.

Nalinrat Chareonsuphong, managing director of property consultant Nexus Property Marketing Co, said higher land appraisal prices would affect prices of condos being launched next year, as land costs would be higher from bigger property transfer fees.

"Increases in condo prices will vary by location," she said. "The more prime the location, the higher the rise in condo prices."

In condo development, land costs currently account for 25-30% of development costs, up from 20% several years ago due to soaring land prices. In city areas, land costs represent up to 40%.

In the first half of this year, land prices in Bangkok soared 15% on average from last year.

Prices in prime locations such as Lang Suan Road increased by 25% to 1 million baht a square wah.

In the Chidlom area, a new record land price of 1.91 million baht per sq w was recently recorded.

According to Nexus's market research, overall prices of Bangkok condos launched in the first half rose by 10% on average from last year.

In the central city, new condo prices rose by 12% to about 155,000 baht a sq metre.

A similar rise was seen in the city fringe and outer city, where new mass transit lines and extensions were under construction. Average prices of new condos in this emerging location were 85,000 baht per sq m.

In the Saphan Mai area, The Episode condominium will be launched on Aug 29, with selling prices of about 80,000 baht per sq m.

The 14-storey complex with 465 units worth 1.1 billion baht will be developed by Asset Wise Co.

"Last year we launched a condo project in the same location at a selling price of only 55,000 baht per sq m," managing director Kromchet Viphanphong said. "The main factor was higher land costs."

The lowest increase in condo prices in the first half was in suburban areas at only 3% to 64,000 baht per sq m due largely to more plots being available for new development than in other locations.

Nexus will join property website Kobkid.com to hold Smart Living at Siam Paragon from Thursday to Sunday, featuring 18 residential projects worth a combined 32 billion baht. Some 1.5 billion baht in sales are expected.

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