The area around Ratchathewi and Phetchburi in Bangkok has been identified as a “golden hotspot” that is currently attracting significant interest from property developers.
Real estate firm Plus Property revealed the results of its latest study that pinpointed the two Bangkok districts thanks to their potential to become a major urban transit interchanges in 2020.
It said land prices had risen at a pace comparable to area around Siam in the heart of central Bangkok. While new projects are few and far between, they have registered a spectacular take-up rate of 95 percent. It said data from the first half of 2015 showed a 6 percent year-on-year increase in price, while historical statistics show a 47 percent increase.
Poomipak Julmanichoti, Managing Director of Plus Property, said a survey of land availability in a 500-meter radius around Ratchathewi BTS station (Ratchathewi-Phetchaburi) had indicated a rising level of interest thanks to the city-center location and the ongoing outward residential development growth from the now-dense Sukhumvit area.
As one of Sukhumvit’s many parallel roads, Phetchaburi Road provides convenient access to Bangkok’s main business and shopping districts.
Furthermore, development of the Orange Line BTS extension makes Ratchathewi a key interchange that will connect the new business district in Bang Sue with current ones such as Saladaeng, Siam, and Asoke.
The interchange station, expected to open in 2020, will likely generate higher interest in residential and commercial property development in this area.
While there is only a limited amount of land available in the area, demand still continues to rise unabated – a fact confirmed by the reported 95 percent average take-up rate. New projects are able to move units very quickly despite the relatively high unit prices – a consequence of the additional development costs from the dismantling of old buildings on acquired land.
Today, Plus said there are only 57 units unsold in the area, and the zone from Phetchaburi Road and Ratchathewi BTS station and on to the Bangkok Business College is the most popular stretch thanks to direct shortcut access to leading malls.
Condominium prices in the Ratchathewi-Phetchaburi area continue to show consistent growth in response to rising demand, the agency said. During the first half of the year, prices had already risen by 6 percent from late-2014 figures to THB 158,046 per sqm. During the past three years prices have increased by as much as 47 percent is said, and high-rise developments are only available at prices well beyond the current average.
During 2014 two projects – Ideo Q Siam-Ratchathewi (sold out) and Wish Signature @ Midtown Siam (on the verge of selling out) – were launched with an average price of THB 175,000 per sqm, while sell-on prices for high-end developments such as Pyne by Sansiri have move into the THB 250,000 per sqm territory – up 80 percent from the launch price six years ago.
Given these figures Plus concluded that new developments launched in this area will be priced above THB 200,000 baht per sqm going forward.
