One question that is commonly asked is “Where is the central business district in Bangkok?” A new report from one real estate firm hopes to answer that question.
The central business district, or CBD, commonly refers to an urban area within a city with the most commercial activity in terms of office buildings, retail centres and hotels. In Bangkok this is considered to be the area lying within Sathorn, Silom, Ploenchit, Wireless, Rama I, Lumpinee, Rajdamri and Sukhumvit. The latter has seen vigorous activity during the last 20 years.
Risinee Sarikaputra, Director, Head of Research and Consultancy for Knight Frank Thailand, explained: “This century we do not expect that the city centre will move, as the mass-transit systems have anchored the city centre to a fixed location, however the centre of Bangkok will expand along the mass-transit lines, as it is doing now, to places like Ratchadapisek.
“New sub-centres will emerge in areas the mass-transit system will serve, expanding and diversifying Bangkok.”
The MRT underground train system was completed in 2004 and this has supported the city’s expansion to the Ratchadapisek area. With new project developments at the Ratchadapisek – Rama 9 intersection, this area has become one of the most talked-about in terms of being the an emerging commercial area, and with strong potential to become an extension of the existing CBD in the future.
The development of high-quality office buildings, such as G Land Tower which is planned to be 615-metres high, the new Stock Exchange of Thailand and the AIA Capital Centre have increased demand from local and international companies to relocate their offices to the Ratchadapisek – Rama 9 area, the agency said.
Unilever has already relocated there, and in addition to the quality supply of offices, supporting amenities in the area offer easy access to the existing CBD, as well as roads linking northern and eastern Bangkok corridors. Rental rates are also very competitive.
Risinee added, “In the past two years we have also seen Bangna emerge as a new sub-centre. The area connects to the Eastern Seaboard via the Bangna Expressway, which was completed in 2000, and the Southern Bangkok corridor via the motorway which was completed in 2007.
“The location has attracted developers to pursue projects in the area, such as Bhiraj Tower at Bitec, which is estimated to be completed during 2016, and SJ Infinite 2, developed by WHA Corporation PLC at Bangna Km8.
“The Mall Group has also announced a mega project in this area called Bangkok Mall to be situated on a plot of some 100 rai. The development will include businesses, residential space, offices, and a theme park. The area has caught the eye of companies engaged in, and related to, airport operations and logistics as well as companies whose factories are located in the Eastern Seaboard.”
Additionally the relocation of Bangkok’s main train station from Hua Lumphong to Bangsue Grand Station has influenced the area around Bangsue. Located on 1,176 rai, the Grand Station will serve as Bangkok’s main transport hub, connecting provincial bus lines, rail links and the city’s subway stations. There will be around four rail routes that will be connected to Bangsue station, linking the northern, southern, eastern and western parts of Bangkok.
The area will also link many commercial areas, such as the Energy Complex, Central Ladprao and Chatuchak Weekend Market. There are many condominium developments in this area as it is conveniently served by various routes, with good connectivity to many parts of Bangkok.
Risinee added: “Bangsue is attractive, evidenced by the number of residential and commercial developments mushrooming in the area. The area also holds much potential for many condominium buyers and investors.”
Bangkok’s city centre itself will expand along the edge of the downtown areas, the agency said.
“People are willing to live in any part of the city if the mass-transit systems cover all areas. We believe that Bangkok’s city centre will not move but it will decentralise to convenient locations, supported by mass-transit systems, quality commercial and residential projects, and the availability of facilities and amenities in these areas,” Risinee concluded.