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BANGKOK’S REAL ESTATE PERIPHERAL MARKETS OFFER EXCELLENT POTENTIAL

BANGKOK’S REAL ESTATE PERIPHERAL MARKETS OFFER EXCELLENT POTENTIAL

The scarcity of freehold land in prime areas of Bangkok, soaring land prices, the tightening of mortgage lending regulations, and the cooling down of Thailand’s economy are combined factors contributing to the decrease of confidence among national real estate buyers.

Also, overseas investors have been more cautious about their choices in the Kingdom, and in Bangkok in particular. Regarding the Chinese, the largest group of foreigner buyers in Thai condo market, it has little to do with the projects’ quality, since most of them are already of high standard in terms of design and features. It is simply due to the economic slowdown in Mainland China, paired with strong Thai baht.

At first glance, the property market may look murky in Thailand. Nevertheless, the country’s resilience to overcome the downtimes, like past political unrests and tourism slumps, is pushing the real estate industry forward. In this sense, Bangkok’s peripheral markets are gaining momentum with new residential properties in the pipeline or already constructed offering excellent potential not only to developers but to buyers.

In real estate, Bangkok’s peripheral markets are the neighborhoods outside the Central Business District (CBD), which is the case of Bangna, Bang Sue, Thonburi Riverside, Phahon Yothin – Ladphrao, and Rama 4.

They have caught property developers’ attention since the announcement of new mass transit rail extensions covering these neighborhoods, also the land price increasements in Bangkok’s prime areas, and the shift of people’s lifestyle towards finding affordable places to live in the city, with easy access to urban commuting. All these factors will benefit the condo selling and rental growth in such peripheral markets.

Bangna

Known as a popular extension of Sukhumvit, Bangna is a family-friendly residential neighborhood that houses two notable malls, Central Bangna and Mega Bangna (includes an IKEA). The area is served by prominent international schools like Berkeley International School, and Bangkok Patana School, the latter where most foreigners living in this part of the city have their children enrolled.

Five golf courses and one golf academy are within driving range. Bangna is also a great dining spot. Fueled by the presence of Bangkok International Trade & Exhibition Centre (BITEC) Bangna, and the future BTS Green Line extension the area will turn into an attractive place not only for living but as a potential commercial hub.

Several property developers like MQDC and Ananda have announced high-profile projects. The first has underway The Forestias, a mixed-use multi-generational lifestyle complex; the latter has in its portfolio the residential properties of Ideo O2 and Ideo Eastgate.

New condominiums are still affordable in Bangna. Most of them are within the range of 80,000-120,000 THB per square meter, which is the case of Dolce Lasalle, an 8-story residential condominium by Sirayos that defines the ultimate, perfect happiness, with European modern style. The property involves a search for fullness and perfection with exquisite units, and flawless facilities including the lobby, the swimming pool, the fitness, and the work-place.

Bang Sue

The construction of Bang Sue Central Station is set to replace Hua Lamphong as the capital’s main rail transportation hub, which will completely transform the area through a wave of development interest.

Furthermore, the Bang Sue-Tao Poon location is forecasted to become a new business center in Bangkok since it’s already connected by the Blue and Purple’s MRT lines at Tao Poon station and is boosted with plans to develop residential and mixed-use projects.

Having in mind the future development of Bang Sue area, the Metrosky Prachachuen condominium by Pruska is surely a great choice of investment. Located close to the upcoming MRT station at Bang Son and Chatuchak Weekend Market, the property consists of three high-rise buildings with a modern and luxury design.

Metrosky Prachachuen is in the right place to experience the lifestyle of those aiming to enjoy the comfort away from the hustle and bustle of the heart of Bangkok, yet with easy access to the city center.

Thonburi Riverside

The mass transit rail extensions of Dark Green Line, Blue Line, and Purple Line are going to reshape Thonburi district into modernity. The Chao Phraya River and the old Bangkok style full of coffee shops, bars, old-fashioned restaurants, and affordable housing, attract a crowd that comes to experience a serene and peaceful lifestyle.

The mixing of old and new makes Thonburi Riverside a freshly trendy area that can become as much popular as some famed places in Sukhumvit and Silom. Exclusive properties rise in front of Chao Phraya River, such as The Icon Siam, a mixed-use project by MQDC comprising of super-luxury residences, exquisite malls, and a variety of attractions.

Parkland Charan-Pinklao, a modern stylish condominium by Naraya Charan resembling the glamour of Thonburi Riverside is facing the prominent Charan Sanitwong Road and Bang Yi Khan MRT station. The property is fitted with a fabulous 50 meter-sized swimming pool with Jacuzzi, a social club, a meeting room, a co-working space, a jogging track, and a fitness center, among other exquisite amenities.

The sky lounge on the 23rd floor of Tower C high ceiling with a clear full curtain grass wall grants enjoyable scenic night views of Chao Phraya River, and the Grand Palace.

Phahon Yothin - Ladphrao

Two decades ago, the area around Ladphrao Road was considered suburban Bangkok. With development fueled by new transportation network with commutes and the surge of high-rise condominiums, corporate office buildings, hotels, and retail shopping more people are attracted to live in this neighborhood, which is becoming more business-oriented.

After all the new mass transit rail extensions start operation, the Phahon Yothin – Ladphrao area will experience a shift from mostly Thais and middle-income Western expatriates to a growing upper-middle-class population.

Located about 300-meter from Phahon Yothin MRT station, The Saint Residences by Salan Development is a high-rise condominium of three buildings – named Anthony, Charles, and Benedict – suitable for those pursuing a bright future in one of the most promising Bangkok neighborhoods.

Rama 4

Stretching between parts of the CBD (from Phra Khanong to Silom) and Bangna, the Rama 4 Road allows drivers and other users to have an easier option of connecting to several prime areas of Bangkok.

Mid-range and luxury hotels can be found in Rama 4, as well as the mixed-use FYI Center, with an office tower that houses a range of firms, while in the other section of the complex operates the 3-star hotel, Modena Fraser.

Land plots are attracting great interest from the property developers due to a relatively better value than in CBD. Rama 4 is welcoming several high-end projects, including “One Bangkok”, a fully-integrated district combining hospitality, retail, art, and cultural experiences, together with the city’s finest residences. Once upon completion, this mega-project will operate a massive transformation of the neighborhood.

Understandably, residential condos are flourishing in Rama 4. Located on Si Phraya Road, Altitude Define is an 8-story luxury class condominium created under the philosophy of “Design for Excellence”. It is meant to be the natural investment for one aiming to experience the word “in the heart of the city”. The property is in range of MRT Sam Yan station (200 m.), the famous Chulalongkorn University (300 m.), and the BTS Sala Daeng station (600 m.).

Nearby is Altitude Samyan-Silom, another luxury condominium by Altitude with superb facilities that include a library, a garden, a swimming pool, a Jacuzzi, a fitness & sauna, as well as a hotel standard service.

Office Buildings

Bangna, Bang Sue, Thonburi Riverside, Phahon Yothin – Ladphrao, and Rama 4 are facing unprecedented development. New infrastructures and a growing population in these areas will boost the surge of office buildings. Therefore, a greater number of companies may seize the opportunity to start or extend operations at facilities less expensive than in the CBD area of Sathorn, Silom, and Sukhumvit.

To follow the pace, and cope up with the global trends, the office sector must adjust to new business approaches regarding the changes imposed by e-commerce, the upcoming 5G and the relation between retail and consumers.

Office buildings with co-working space are set to increase. They will be fueled by the 5G digital revolution. Talented young people will live and work in these five neighborhoods, and flexibility may be the norm within a decade. Moreover, in Bangkok’s peripheral markets staff will find a better quality of life through lower housing prices and shorter commutes.

If you need any further help or want to have a chat with us, please feel free to write an email to daniel.O@angelrealestate.co.th. We will be more than happy to discuss and support your international real estate investment.

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Daniel Oliveira

With over 10 years experience of journalism between Macau, Special Administative Region of People's Republic of China, and Portugal, Europe, I developed a special interest in real estate by observing closely the changes and impacts the sector has in people's lives. It was then a natural choice of going in depth and be passionate about the industry.

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