Bangkok's outer areas dominated the condominium market in the first half of this year, says a local property consultancy.
The areas, defined by Knight Frank Thailand as Bangkok's periphery, run from Sukhumvit Soi 63 to the Bang Na intersection, Saphan Taksin to Wong Wian Yai and include Srinakarin, Chaeng Watthana, Kaset-Nawamin and Phetkasem roads.
These areas contributed heavily to the recent growth of Bangkok's condominium market, accounting for 70% of new launches or 22,465 units.
Risinee Sarikaputra, the director for research and consultancy, said the growth was concentrated in areas close to the extended mass transit system.
The first half saw 32,244 units offered in the Bangkok market, up by 18% from the end of last year, according to Knight Frank's research.
While most newly launched condominiums were in Bangkok's outer areas, the areas close to Ratchadaphisek and Lat Phrao roads near mass transit and Phahon Yothin sois 1-13 and 2-14 were also popular, with growth of 25%.
The central business district (Sathon, Silom and Wireless roads) saw a 5% growth in new condo launches.
Growth in the condo supply in the peripheral areas was fuelled by the extension of the mass transit network, especially along the skytrain lines from On Nut to Bearing, covering eastern Bangkok along outer Sukhumvit Road and from Krung Thon Buri Road to Bang Wa, covering the south across the Chao Phraya River to Thon Buri; and the subway's Purple Line extension linking northwestern Bangkok from Bang Sue district to Nonthaburi province.
Knight Frank research shows the unit take-up of the overall Bangkok condominium market was good.
Among the newly launched units during the first half, the take-up rate was 56.6%, representing 18,234 units sold.
In Bangkok's periphery, the unit take-up rate was robust at 52.8%, representing 11,864 units sold.
Condo demand in Bangkok's peripheral market was mainly from the mid-market and low-end segments, with targeted buyers being previous apartment renters.
The average selling price of condominiums in the periphery was highest along the completed skytrain line from Krung Thon Buri to Bang Wa, at 106,083 to 109,111 baht per square metre.
"We're expecting a surge in the condo supply in Bangkok's peripheral areas, particularly around the extension of mass transit across the river in Thon Buri. Major property developers will extend their investment in order to capture increasing demand, especially from first time residential buyers who prefer to purchase condo units that allow them to conveniently travel to the city by mass transit," said Ms Risinee.
"Units in the projects in proximity to the subway's Purple Line have been slowly absorbed, however. There are still many units available for sale in this location, so developers should pay attention to the influx of future supply."