The zone around Asok BTS station is one of the highest-potential areas in Bangkok for property development. In addition to being an interchange for the subway and skytrain lines, it's home to Terminal 21, a well-known shopping mall.

The area's many office buildings feature total office space of more than 240,000 square metres. Four- and five-star hotels dot the neighbourhood, and several more are under construction, including Solaria Nishitetsu Bangkok by Nishitetsu Group of Japan. Nishitetsu is stepping into the local property market in a joint venture with SC Asset Corporation and plans to partner with the latter on a condominium project.

Land plots in the area sell for more than 2 million baht per square wah, making them suitable for condominium projects, which can generate sufficient revenue to cover the high land costs. Some 6,928 condominium units are already in the area, with about 90% having been sold.

The average selling price for all condominium units in the area is 170,000 baht per sq m, but some newer projects are selling at more than 300,000 baht per sq m. Because of the area's strong potential, land prices continue to increase.

Furthermore, some large-scale mixed-use projects, such as the renovation of Queen Sirikit National Convention Center and The Parq project at the corner of Ratchadaphisek and Rama IV roads, will have an influence on the nearby Asok area's evolution.

But the most important factor in the area is the continued increase in land prices, which are growing by 15% annually.

Many condominium projects that were launched in the past few years are selling at more than 200,000 baht per sq m.

Land in sois connected to Sukhumvit Road is selling at more than 1.5 million baht per square wah, especially in sois that are wider than 10 metres and can accommodate high-rise buildings. Land plots in the area along smaller sois (narrower than 10 metres) have significantly lower land prices. Still, some developers are looking to buy land plots in all areas.

The condominium market around Asok remained steady in the past few years as several new projects were launched in the area. Most of these new developments were launched along the sois or smaller lanes linking to Sukhumvit and Ratchadaphisek roads. The condominium projects along these smaller throughways have prices of more than 200,000 baht per sq m.

Other condominium projects with units selling at more than 200,000 baht per sq m include those close to mass transit stations. But in this location all projects are more than 400 metres from Asok BTS station. This is an important factor in keeping land prices in the area high and rising, due to the limited availability of plots.

Some shophouses are selling out to property developers at more than 20 million baht per unit. This scenario offers the best proof that developers still have confidence in the area, despite soaring prices.

Several new condominium projects are expected to be launched in the area this year, but they will occupy land farther than 400 metres from Asok BTS station.

Two developers have already announced plans to launch condominium projects in the area.

A Hong Kong developer has a plot in Sukhumvit Soi 23 and plans to launch a high-end condominium project with sales prices exceeding 200,000 baht per sq m. The other developer is SC Asset, which will launch The Crest condominium project, also in Sukhumvit Soi 23.

The two developers have yet to announce further details of the two projects to the public.

All new condominium projects in the area can expect a high level of interest from potential buyers, due to the desirable location, numerous transport options and the intangibles that set Asok apart from other locations.

Surachet Kongcheep is managing director of Phoenix Property Development and Consultancy Co Ltd.