MAY 2013 | BANGSAEN CONDOMINIUM MARKET
THAILAND
BANGSAEN CONDOMINIUM MARKET
EXECUTIVE SUMMARY The seaside university town of Bangsaen is enjoying a building boom as student demand for condominiums outstrips supply. The town, just a 90-minute drive from Bangkok, is not as popular a tourist destination as some other resorts, either among Thais or foreigners, but it is home to the Burapa University Bangsaen Campus. Students and staff from there are the main drivers of the market, especially in the area near the university. The total condominium supply completed and registered at the Department of Land as of May 2013 was approximately 4,380 units, with a take-up rate of more than 72% in all projects. Most of the available units were launched in 2012, with more than 2,670 of those in the Northern Bangsaen area. With more than 30,000 students at Burapa University Bangsaen Campus, 6,000 of whom started in 2013, there is a strong demand for condominiums, which are often purchased by students and then sold at the end of their course, or by investors in order to rent the units to students. All the current condominium developers in Bangsaen area are local developers, but some listed developers are planning to launch new projects in the area. The average selling price of condominium units in the Bangsaen area is approximately THB45,600 per sq m. That price, in May 2013, is around 7% higher than at the same time last year, and it may rise again in the future. Saensuk Municipality has long-term development plans to improve the city’s infrastructure, tourist attractions and cleanliness. These improvements will enhance the residential market in the area and attract new buyers from Bangkok looking for second homes.
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MAY 2013 | BANGSAEN CONDOMINIUM MARKET
SUPPLY HISTORICAL SUPPLY BY YEAR, MAY 2013
Source: Department of Land, Colliers International Thailand Research Note: E = Estimated numbers of condominium units expected to be completed in 2013 – 2014.
Bangsaen is one of the closest beaches to Bangkok and its neighbouring provinces. It is only a 90-minute drive from Bangkok. Although Bangsaen is less popular with Thais and foreigners than other coastal cities in Thailand, the property market in the area has continued to grow in the past few years. The first condominium project registered in Angsila was in 1992 with 550 units. The number rose steadily every year until 2007, and then sharply increased from 2008 to 2012. This was due to the demand
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from students at Burapa University in Bangsean, who prefer to stay in condominiums rather than apartments. As of May 2013, there are approximately 4,380 units, according to statistics from the Department of Land. Most of the new condominium projects completed since 2008 are located in Bangsaen around Burapa University because most buyers are students there. There are also speculators and investors who buy condominium units for leasing to students.
MAY 2013 | BANGSAEN CONDOMINIUM MARKET
HISTORICAL SUPPLY BY LOCATION AND YEAR, MAY 2013
Source: Department of Land and Colliers International Thailand Research Note: E = Estimated numbers of condominium units expected to be completed in 2013 – 2014
The number of condominium units was highest in Angsila from 1992 to 2012, when it was overtaken by Southern Bangsaen, which from 2005 saw a sharp increase in the number of condominiums being built. Although the Angsila area was the first location for condominium projects in the Bangsaen area, there have been no new projects in the area since 2008. The first condominium project in the Southern Bangsaen area was in 2005, and the number of condominiums built there then increased by around 154 units per year until 2012.
The more interesting areas are Northern Bangsaen and Southern Bangsaen, as there are many condominium projects under development in both areas. The first condominium project in Northern Bangsaen was started in 1994 and the numbers increased annually until 2012. Students from Burapa University are the main driver for condominium project development in the Northern and Southern Bangsaen areas. Students have changed their lifestyle from apartments to condominiums and then sell their units after graduation.
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MAY 2013 | BANGSAEN CONDOMINIUM MARKET
FUTURE SUPPLY CUMULATIVE FUTURE SUPPLY SCHEDULED TO BE COMPLETED FROM 2013 TO 2015 BY LOCATION
Source: Colliers International Thailand Research Note: The year completion is expected by developers
Due to the limited amount of land available in Angsila, only around 380 units are under construction and scheduled to be completed there within the next two years. More than 600 units are expected to be completed in 2013 in Northern Bangsaen and more than 440 units in
Southern Bangsaen. Northern and Southern Bangsaen areas have become the most fashionable area for condominium development in the past few years, due to the high number of plots of land available at reasonable prices and the increasing demand.
DEMAND TAKE-UP RATE OF ALL CONDOMINIUM PROJECTS IN THE MARKET, MAY 2013
Source: Colliers International Thailand Research
The average take-up rate in the Bangsaen and Angsila areas is approximately 72%. The take-up rate in Angsila is the lowest at around 64%, and approximately 87% of the units in the area were launched from 2012 to May 2013. More than 2,670 units were launched in 2012 in the Northern Bangsaen area, with increasing demand in the area
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and the presence of many supporting facilities being the main drivers of the high take-up rate in Northern Bangsaen. The average take-up rates in the Northern and Southern Bangsaen areas are approximately 74% and 72%, respectively.
MAY 2013 | BANGSAEN CONDOMINIUM MARKET
DEMAND DRIVERS The main buyers in the Bangsaen area are students from Burapa University or people who work at the university, as well as people who came to work in the area or Muang Chonburi district. In addition, many buyers have bought condominium units to rent out to students or others. Burapa University Bangsaen Campus is the main factor for residential projects in the Bangsaen and Angsila areas, especially condominium projects.
support facilities such as car parks and security systems. This also attracts investors who wish to invest in condominiums around the university area for letting. There are more than 30,000 students at Burapa University Bangsaen Campus with approximately 6,000 new students in 2013. This huge number of students is a major driver that boosts the residential and retail markets in the area. Most condominiums launched over the past two to three years focus on university students who invest in residences, then sell or lease them out after graduation.
Although condominiums are more expensive than apartments, students from Burapa University prefer living in condominiums because of the
PRICE AVERAGE SELLING PRICE OF CONDOMINIUM UNITS AVAILABLE FOR SALE IN BANGSAEN AND ANGSILA
Source: Colliers International Thailand Research
The average selling prices in the Bangsaen area range from approximately THB750,000 to more than THB8 million per unit, or around THB29,000 to 115,000 per sq m, and the average price of all condominium units in the area is approximately THB45,600 per sq m, an increase of around 7% from 2012.
where students and employees are the main target group. Moreover, land prices in the area are higher which directly affects the prices of condominium units. The average price in Northern Bangsaen area in 2013 has increased from 2012 by more than 15%, because many condominium projects launched in this area in the past one to two years are almost finished.
The average selling price in the Southern Bangsaen area is higher than other locations by 12 - 45% as it is located closer to the university
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MAY 2013 | BANGSAEN CONDOMINIUM MARKET
OUTLOOK Although the main buyers in Bangsaen are students and staff of Burapa University Bangsaen Campus as well as investors, the existing supply in the area is still less than the number of new students each year. In addition, people who come to work in Muang Chonburi district, Chonburi are also buyers in this market. This number is a major growth factor of the condominium market in Bangsaen and Angsila for the future. The floods in the last quarter of 2011 were another demand driver for the condominium market in provinces around Bangkok including Bangsaen, due to it being only a 90-minute drive from the capital and suitable as an emergency home when Bangkok is affected by a natural disaster.
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All condominium developers in Bangsaen area are local developers, but some listed developers are planning to launch new projects in the area. In addition, the average price in May 2013 had increased from the same time the previous year by around 7%, and may increase again in the future. Saensuk Municipality also has long-term development plans to improve the city’s infrastructure, tourist attractions and cleanliness. These improvements will enhance the residential market in the area and attract new buyers from Bangkok looking for second homes.
MAY 2013 | BANGSAEN CONDOMINIUM MARKET
APPENDIX
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MAY 2013 | BANGSAEN CONDOMINIUM MARKET
ZONING
Angsila Angsila is located north of Bangsaen and Khao Sammuk. This is the old Chonburi community. The majority of the population are fishermen. Tourists visit Angsila for its famous fresh seafood and stone mortar products. This area covers the northern part of Road No. 3134. Phat Phetra Road is towards the north and Sukhumvit Road is on the east.
Northern Bangsaen Bangsaen is the one of the most famous beach areas in Thailand as it is only a ninety minute drive from Bangkok. This area covers the best beaches of Bangsaen and most hotels in Bangsaen are located here.
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There were several condominium projects as well as housing projects launched in this area over the past five years. Northern Bangsaen area covers the area above Road No. 3137 (Long Hat Bangsaen Road) up to Road No. 3134 in the north and Sukhumvit Road on the east.
Southern Bangsaen Burapha University is a major driver in this area. Most residential projects are located around the university. Several new condominiums projects were launched in this area especially in the past five years, all of which target the Thai demand from the university. This area starts from the southern part of Road No. 3137 to Sukhumvit Soi 20 in the south and Sukhumvit Road on the east.
MAY 2013 | BANGSAEN CONDOMINIUM MARKET
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RESEARCHER:
RESEARCHER:
Thailand Surachet Kongcheep Senior Manager | Research EMAIL surachet.kongcheep@colliers.com
Thailand Phattarachai Taweewong Senior Researcher | Research EMAIL phattarachai.taweewong@colliers.com
RESEARCHER:
RESEARCHER:
Thailand Wiparut Ruangsombat Researcher | Research EMAIL wiparut.ruangsombat@colliers.com
Thailand Benjaporn Wong-ek Researcher | Research EMAIL benjaporn.wong-ek@colliers.com
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