Everyone you speak to will have their honest opinion about the next residential property hotspot in Bangkok.
Not for the first time, Knight Frank Thailand has focused on what is has described as ”the great potential” of Bangkok’s latest residential area – Taopoon-Bangson in the vicinity of Bangsue.
The location is what Knight Frank predicted will become the new central hub for transportation and businesses in Bangkok and for Thailand as a whole. The condominium market in Taopoon is being developed and covers the whole area surrounding Bangsue station. It is growing in supply, demand, and pricing, the real estate firm said.
Phanom Kanjanathiemthao, Managing Director of Knight Frank Thailand, said that Bangsue is being developed to become the centre of transportation for Bangkok and for the country following the government and State Railway of Thailand’s development plan.
Bangsue station is set to become the central railway terminal for the two high-speed rail, including the northern line to Chiang Mai, the Bangkok-Hua Hin line, as well as the Bangkok-Nong Kai line that will serve as a connection to the Northern Line, North-eastern Line, and Southern Line. Bangsue station will also become the centre of the Bangkok Mass Transit System (BTS).
Phanom added the State Railway of Thailand is still in the planning process for developing the area around Bangsue Grand Station. The 305.5 Rai area shows potential for business development.
This new business area will be divided into zones that will provide a modern business hub with hotels, a food plaza for tourists and business, a commercial area for both retail and wholesale serving ASEAN, a zone that will focus on residential areas, work, and relaxation, and also a centre for transport – providing a connecting between the BTS and the MRT which will extend to Bangsue Grand Station.
The condominium market in Taopoon covers the area around Bangsue station, including Pracha Rat Sai 1 Road, Pracha Rat Sai 2 Road, Pracha Chuen Road, Krung Thep-Nonthaburi Road from Soi 1-39 and Soi 2-50.
The real estate firm noted that the total supply is approximately 10,878 units. Condominium development in this area began in 2011; 803 units came to the market that year. In 2012 there were 1,257 units offered at three different condominium projects and in 2013 there were 3,781 units on the market for sale. During 2014 the largest amount of condominiums for sale – 5,037 units – was recorded said Phanom.
Phanom explained that demand for condominiums in this area is growing. So far more than 8,768 units of 10,878 units (80.6 percent) have been sold, and there are only 2,110 units left. The sales rate for condominium averages between 1,800 and 2,000 units annually.
Selling prices for condominiums in this area are likely to increase. At present the average price of condominium in the area is THB 88,000 per sqm. This has increased from THB 66,360 per sqm in 2011. Prices are likely to increase to more than THB 100,000 per sqm, and indeed many projects in the area have already opened for sale at more than THB 120,000 per sqm Phanom added.
Furthermore increasing investment at the current land prices of more than THB 350,000 per sqm will affect the selling prices of future condominium projects.
The completion of Bangsue Grand Station and railways systems in 2019 will affect demand as consumers migrate to the Taopoon-Bangsue area. This will result in an increase in prices of condominium to between THB 120,000 per sqm and THB 150,000 per sqm in some projects.
Phanom concluded the Metropolitan Rapid Transit (MRT) Purple Line will be completed and ready for testing by May, and will be opened for service during August.
The MRT Blue Line between Bangsue-Taopoon stations will be opened for services also in August, and will connect the MRT Purple Line and other railway systems. This, he said, showed great potential and convenience for traveling and living in the Taopoon area.
