Current shophouse property values

Higher Sukhumvit: prices up, but still great value for shophouse loft style.

Last weekend we toured some great neighborhoods on higher Sukhumvit areas (Ekamai to Udomsuk) which is the focal area of our efforts at villaginthecity.com. We found the following:

-good (friendly, neighborhoody, pleasant, safe) areas for the expat who wants to enjoy the “native quarter” can be found but availability of promising shophouse and townhouse properties with good transportation links (eg skytrain) is tightening.

-land prices are up from last year, with shophouse lots, typically 12-24 square wah, asking prices now at 200-300k baht per square wah. (One wah is 4 square meters or 43 square feet land area). This works out to be about 200 $US per square foot.

-shophouses (2 to 4 stories) modernized in our loft style can be priced at about 30,000 baht per square meter (this is usable floor area, not land area). This is a little less than 50 percent of the price of new condos in the same area (see graph).

We conclude that there are still good opportunities for us to selectively acquire and improve these properties, adding value through our access to credit, design and construction experience, and stock of country-style antique furniture and ornamentation not otherwise available. At present we plan to continue this focus with emphasis on rentals to expat and Thai clients who prefer this new style of urban living.

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