In its latest research real estate firm Knight Frank Thailand has identified areas of midtown Bangkok that are currently attracting interest from buyers and investors, and are probably worthy of further investigation for anyone looking to buy property and real estate in the Thai capital.
The Rama 9 and Ladprao areas of Bangkok has been identified as one of several new hotspots for residential, commercial and tourism-related activities in the Thai capital.
According to Knight Frank Thailand, the areas proximity to a plethora of shopping centres and transport links are several draws for buyers and investors alike.
Latest research from the company showed that during the past five years, the Ratchada Rama 9 and Ladprao areas have undergone many changes. Seamless access to the mass transit systems and connectivity to major city roads have encouraged robust expansion in every segment of the property market. The completion of the Central Plaza Grand Rama 9 project further boosted convenience for people who work have already chosen to live in this area.
From 2009 until the first half of this year, the accumulated condominium supply along Ratchada Rama 9 and Ladprao comprised 41,370 units of which around 35,881 units were sold. The sales rate was approximately 86.7 percent, according to Knight Frank.
Another interesting area in midtown Bangkok, according to the firm, is around Phayathai and Phaholyothin, with a total supply of about 13,595 units. Of these about 11,674 units have been sold, representing a sales rate of 85.9 percent. This area is also witnessing many office developments, for instance Pruksa Real Estate is developing an office building in the area for their own use. Named Pearl Bangkok, the 25-storey building is located in front of Phaholyothin Soi 5, with an office area of about 30,000 sqm.
Another new office building is Shinawatra Tower 4 which is located on Phaholyothin Road next to Shinawatra Tower 1. The office will be a 24-storey building with a net lettable area of 10,000 sqm.
The completion of these two office buildings will increase the demand for condominiums in the area, and one such project is The Monument Sanampao which launched during the first quarter of this year and reportedly sold out. Another condominium project is The Line at Chatuchak Station which also launched during the first half of this year and sold out. Both projects are developed by Sansiri Public Company Limited.
Another area in midtown Bangkok that is interesting for condominium developers is Petchburi Road, which runs parallel to Sukhumvit Road. There are only 6,021 units in the supply, with 5,244 units sold, or about 87 percent. With close proximity to Sukhumvit, Petchburi started to see condominium developments in 2008; the first project was The Circle Condominium by Fragrant Group. In 2009 other condominium developments, including The Address Asoke and Villa Asoke, cropped up. Both projects are located near the airport rail link station at Makkasan. The Address Asoke was very successful, and its average selling price on more than THB 100,000 per sqm was the same as many projects located on Sukhumvit at the time.
Petchburi Road seems to become more attractive since the announcement by Singha Corporation Company revealed its plans to develop Singh Complex on a land plot of about 11 rai. The mixed-use development will consist of an office tower, convention hall, retail space and hotel. This project will certainly increase the demand for condominiums in this area, according to Knight Frank.
Rama 3 is another area that is considered to be in Bangkok’s midtown. The majority of condominium projects in this area are classed in the Grade ‘C’ category, with approximately 5,334 units representing about 66.4 percent of the total supply. Grade ‘B’ condominiums in this area included around 2,096 units, representing about 26.1 percent, whereas Grade ‘A’ condominiums totalled 608 units or 7.6 percent.
Knight Frank said It is interesting to see that Grade ‘C’ condominiums showed the highest demand in terms of both sales rate and number of units sold, with 4,863 units sold and a 91.2 percent sales rate. The demand for Grade ‘B’ condominiums was 1,715 units with a sales rate of 81.8 percent, whereas Grade ‘A’ demand was 406 units with a sales rate of 66.8 percent.
During the second quarter of this year the average selling prices of new condominiums launched in midtown Bangkok was around THB 126,369 per sqm. The highest average selling price was seen in Phaholyothin at approximately THB 149,000 per sqm, followed by Ratchada Rama 9 and Ladprao at around THB 132,109 per sqm and Petchburi at THB 98,000 per sqm.
The lowest average selling price in the midtown condominium market in Bangkok was seen in Rama 3, with prices at approximately THB 78,000 per sqm.