Let us first start by defining the boundaries of Bangkok’s CBD.
“CBRE Thailand” one of the established Property Consultancies in Bangkok, defines the boundaries of the Core Central Business District as Silom, Sathon, Rama IV Rd, Ploenchit, Wireless Rd.
Naturally, as the commercial, leisure and business centre of Bangkok, the land price is bound to be the highest which in turn leads to rising property prices.
In recent years, the high land prices have led to talks about the development of new CBD in greater Bangkok such as Rama 9 and Thonglor.
However, it is of my opinion that while it is common for sub-CBD to gain momentum and develop, the local infrastructure, office tower supply, mass transit lines, general transport links and leisure options have firmly established Bangkok’s city centre.
Here are 5 Reasons Why You Should Invest In Bangkok’s CBD – While You Can Still Afford It
1. Prime CBD Land Is Now Hard To Find
With the relentless urbanization, it is now difficult to find prime land plots for redevelopment. The lack of land supply simply means the prices of prime land in Bangkok CBD will continue to rise. Which will be a much-welcomed news for existing landlords and property owners.
Developers continue to launch high priced condos in the area. With Sansiri’s Wireless 98 reaching as high as THB 720,000 per square meter.
2. Good Investment For Landlords
Bangkok’s CBD is a little bit, unlike others. It has developed into an interesting landscape featuring a mixture of hotels, retail and residential developments and offices.
All the best of everything are within reach for someone staying here. It’s the district most highly paid expats would want to rent.
Tried and trusted location with high-quality tenants. It can’t get any better than this.
3. Luxury Condos Are Luring Asia’s Ultra-Rich To Bangkok
Developers and analysts are reporting high levels of interest in the luxury real estate in the city’s central areas, even in the light of rocketing purchase prices and low to non-existent yield potential. A trend fuelled in part by growing interest among rich Chinese, Singaporean, Japanese and Hong Kong buyers.
Even domestically, the affluent urban Thais are increasingly moving from large suburban mansions to condominiums and apartments in central Bangkok.
In Bangkok’s CBD, this is where you find the highest concentration of luxury condominiums on offer.
4. The Best Of Everything Is In Bangkok’s CBD
Living in Bangkok’s CBD, you have access to the best of everything. Minus the traffic jam to get there.
Premier office buildings such as the Empire Tower, Sathorn Square, Bangkok City Tower, Standard Chartered, AIA Sathorn, Bangkok Bank Head Quarters, UOB Bank, and many more;
5-star and top hotels such as the Dusit Thani Hotel, Mandarin Oriental, Shangri-La Hotel, Sukhothai, Banyan Tree, W Hotel Bangkok, Sofitel So Hotel and many more;
Embassies such as those from Australia, France, Malaysia and Singapore;
Top educational institutions the likes of Bangkok Christian College, St Chef on Convent, Assumption College, Shrewsbury International School and the Bangkok University;
Leading medical institutions such as Bangkok Christian Hospital, Saint Louis Hospital, Hospital Bangkok Nursing Home (BHN) and Chulalongkorn Hospital; and
Cultural establishments such as Alliance Francaise, Goethe-Institut Thailand, Sathorn Soi 1.
Shopping Belt such as Siam Paragon, Siam Centre and Central World.
5. Bangkok’s CBD Still Offers Decent Value For Money
According to globalpropertyguide.com, property prices in the world’s top real estate markets like the US, UK and other Asian hotspots like Singapore and Hong Kong are between two to six times more expensive than Thailand.
Also, the absence of punitive stamp duties for foreign nationals such as those found in Singapore and Hong Kong and the liquidity of developers and the selectivity of banks in approving mortgages as positive indicators.
And, of course, also appealing are the perks that come from living in a city with myriad lifestyle benefits and easy access to the rest of Thailand and the world.
Land prices in the central business district (CBD) are expected to continue rising despite the already pricey levels in the area.
The average land prices in the CBD rose 6.4% last year, with the highest price recorded at 1.91 million baht per square wah in 2015.
Surachet Kongcheep, associate director for research at property consultant Colliers International Thailand, said land plots in locations along the Skytrain route from Siam to Asok stations are getting scarcer, driving offering prices to over 2 million baht per sq w.
“No landlords on the main road along the Skytrain in these locations have offered prices lower than 2 million baht per sq w since last year,” he said. “The record high offering price is 2.5 million baht on Phloenchit Road.”
However, there were no sales for over 2 million baht per sq w (excluding plots bought with a special entrance to the road) since a deal in 2015 where the price was 1.91 million baht per sq w.
That was for a plot on Chidlom Road opposite to Central Chidlom bought by SET-listed developer SC Asset Corporation Plc, which launched a luxury condo project there last year with an average sales price of 350,000 baht per sq meter.
“Developers have a ceiling price for buying plots in prime locations,” said Mr Surachet. “As soon as they think a condo project developed on the plot can be sold at a high price, they will buy despite such high land prices.”
Developers continuing to launch high-priced condo projects in these locations include SC Asset, Sansiri and Ananda Development. If they keep buying new plots in these locations, it means their existing supply is taken up, he said.
There has been no movement in these locations since late last year as demand for condos priced higher than 300,000 baht per sq m was limited, said Mr Surachet.
According to property consultant Agency for Real Estate Affairs (AREA), land prices in Greater Bangkok will rise by 4% on average this year, the same as last year. In 2015, prices rose 3.2%, down from 3.5% in 2014 and 4.6% in 2013.
The highest increase last year was near the Sukhumvit-Asok Road areas, up 27% to 1.4 million baht per sq w, followed by locations near The Mall Tha Phra on Ratchadaphisek Road in Thon Buri district, with a 25% uptick to 300,000 baht per sq w.
AREA managing director Chamnong Buakai said the Sukhumvit-Asok location saw the highest increase as available land plots there for property development were scarce.
As of the end of 2016, the highest land prices were still in Siam Square, Chidlom, and Phloenchit areas at 2 million baht per sq w, expected to rise to 2.13 million by the end of this year, a rise of 6.5%.
Appraised land prices at these locations for 2016-19 by the Treasury Department were 900,000 baht per sq w, second only to Silom Road at 1 million baht per sq w.
“Locations on Rama IV Road from the Sathon to Sam Yan intersection will become emerging areas for new development, with at least two large projects expected to be located there,” said Mr Chamnong.
Land prices on Rama IV Road are around 400,000-500,000 baht per sq w. AREA estimated they would rise to 1 million baht per sq w once the Grey Line between Rama III Road to Watcharaphol started construction.
According to SET-listed hotel group Dusit Thani Plc’s report to the Stock Exchange of Thailand, a plot sized 23.5 rai on the corner of Rama IV and Silom roads, where the Dusit Thani Hotel is situated, was leased to Dusit for 30 years at a price of 7.33 billion baht, or 780,000 baht per sq w.
The lowest land price in Greater Bangkok was on Liab Khlong 13 Road KM5 in Lam Luk Ka area at only 2,600 baht per sq w because there was no infrastructure to attract new property development.
1 of them, namely Oka Haus is widely expected to garner strong interests from both local Thais as well as overseas investors.
Oka Haus Lobby: Artist Impression
Here are 5 reasons why we would expect huge demand for this development.
1. Sansiri – A Quality Assured Developer
The brand Sansiri is no stranger to the local Thais as well as overseas investors. It is a name that is associated with quality and this gives investors a peace of mind with their investments.
Sansiri also does provide a full suite of services to their investors, from the point of sale to taking care of after-sales services, including assisting investors with getting tenants as well as property management.
2. Haus – A Brand Associated With Quality Urban Lifestyle
Oka Haus and Kawa Haus will be the 4th and 5th installment of the Haus series. As with their predecessors, careful thoughts are given to the design and implementation of the developments. This is not just another project whereby the developer simply tries to squeeze as many units as possible on a tiny piece of land to maximise their profits.
1 of the standout feature of the Haus series is the impressive facilities coupled with smart home technologies.
Sandee: Sansiri Delivery Bot
Each Haus series brings with it their own unique concept to cater to today’s urbanites’ lifestyle taste.
It is truly an art masterpiece that every homeowner would be proud of.
3. Location
In terms of accessibility, Oka Haus is 5 minutes to Thonglor BTS Skytrain and 8 minutes to Queen Sirikit National Convention Centre MRT.
Oka Haus is also only a mere 5 to 10 minutes away from 2 major expressways.
Accessibility – Checked.
A brand new community mall Suanplern Market Rama IV is just nearby. More than 50 well-known restaurants will have branches there as well as big establishments like Zen, Nitaya Kai Yang, Boots and a Mos Dental Clinic.
Suarn Plern Market
Alternatively, the famous Thonglor – Ekamai district is just 5-10 minutes away.
Restaurant in Thonglor
Convenience – Checked.
4. Investment Potential
While this area may be new to some, you would be glad to know that the neighborhood around Rama IV Road is undergoing a major transformation. It is 1 of the hotspots earmarked for growth.
Location of Oka Haus
Urbanisation is happening quickly. More and more investors are starting to take notice of this area.
It is understood from developer’s website that the prices start from 3.69MB. To many, this is certainly a very affordable entry price for this up and coming location.
In fact, if you were to cross to the opposite side of Thonglor BTS, you would expect to pay a package price of 7MB upwards (almost double!) for a brand new condominium of equivalent quality.
We will be doing a full review of Oka Haus when we get our hands on more detailed information. So watch this space!
Rama IV Road also connects Silom-Sathorn, Lumpini-Ploenchit, and Sukhumvit. 3 of Bangkok’s prime districts.
The Transformation of Rama IV Road
Despite its superior connectivity, Rama IV Road has yet to experience levels of growth similar to Sukhumvit Road.
However, that is all about to change.
As land prices in traditionally popular areas soar and land supply are hard to come by, developers have now turned their sights to areas around Rama IV. The region offers large plots of good value land available for redevelopment.
According to a report by The Nation, investments worth more than THB 100 billion are being pumped into condominiums, retail, office and hotel development on Rama IV. Transforming the road into a new landmark area of Bangkok over the next few years.
What are catalysts driving this transformation? Let us see.
One Bangkok
A once-in-a-generation development, One Bangkok is a fully integrated district ideally located in prime central Bangkok at the corner of Wireless Road and Rama IV, right next to Lumphini Park, with unsurpassed accessibility through direct connections to the MRT.
Spread over 41 acres, this USD 3.5B project will be a mix of office towers, hotels, residences and retail. Reports say it will include a 90-story skyscraper.
FYI Centre
Located at the corner of Rama IV Road – Ratchadapisek Road, the FYI Centre comprises of two buildings and provides over 55,000m² of office space, a 239-room hotel, and public retail and restaurant spaces. The development is completed and fully operational.
Suan Plern Market
The Athakravi Group, looking to capitalize on the 10,000 office workers in the nearby offices and local residents, has launched a 10,000 square meter Community Mall. This development dubbed “Suanplern Market” will offer an industrial loft concept and will have more than 250 Shops including a Makro Food Service.
Redevelopment of Khlong Toei
According to a report by The Nation, The Port Authority of Thailand, a state agency, hopes to develop 223 rai in Khlong Toei for a mixed-use project, comprising an office building, logistics and warehouse facilities, and a shopping complex.
The project, which has an investment budget of over THB 50 billion, is currently at the study stage, with negotiations underway with lessees about vacating the land.
Investment Opportunities
As the area urbanizes, developers are also busy snatching up good land parcels for condominium developments.
Condominium projects launched in the area since the beginning of 2014, and worth more than THB 50 billion in total, include the Condolette Pixel by Pruksa Real Estate, The Portrail RamaIV-Sukhumvit 38 by Krung Thai Land Development, The Room Rama IV by Land & Houses, the Aspire Rama IV by AP (Thailand), and Ananda Development’s THB 6.5-billion Ideo Q.
Oka Haus by Sansiri is another quality development waiting to benefit from the transformation of the Rama IV region. It is located mere minutes away from Rama IV and Sukhumvit. Oka Haus is projected to launch sometime end of this year.
When all of the new investment is complete, Rama IV will be a commercial and residential landmark in Bangkok.
Thailand listed developer Sansiri is set to launch their highly anticipated development Taka Haus in September.
Introduction
Taka Haus is a freehold 269 unit condominium located within the Thonglor-Ekamai District. Thonglor-Ekamai is a high-end residential district highly sought after by locals and expatriates alike.
Who Is The Developer?
Taka Haus is jointly developed by Sansiri and Tokyu Corporation.
With over 33 years of experience and hundreds of projects across Thailand, including 2 hotels and a residential project in Kensington, London, Sansiri is widely regarded as Thailand’s leading developer of quality houses, townhouses, and condominiums.
Tell Me More About Taka Haus.Taka Haus is a freehold low-rise condominium made up of 269 units. Buyers will be able to choose between 1 bedroom or 2 bedroom units.
The concept behind Taka Haus is to create a perfect blend between active and resort-like lifestyle for individuals living in the vibrant city of Bangkok.
The developer has spared no efforts to imbue the development with lots of greenery and communal facilities to suit the demands of millennial.
And did I forget to mention that the property will come fully furnished? Yes, that means when you get your keys, you can immediately rent it out or just simply bring your luggage to stay!
The Location
Taka Haus is located within the Thonglor-Ekamai District. When people hear the name of Thonglor-Ekamai, they think of Bangkok’s best eateries, shops and some of the trendiest place to drink, party and hang out at night.
The area is also home to a superb selection of premium brand flagship stores and luxurious residences in the vicinity are particularly sought after.
These are just some of the reasons why this neighbourhood is considered the Beverly Hills of Bangkok. Greatly appealing to the affluent Thais and expats.
Accessibility
Staying in Thonglor-Ekkamai allows easy access to both inner and outer city especially in Sukhumvit area.
The nearest BTS is Ekkamai station. And it only takes you 15 minutes to reach Bangkok’s central business district.
There are also numerous office buildings, lifestyle community malls, international schools and medical institutions within the vicinity.
Everything is easily within reach when you are staying here.
I Would Like To Purchase This Property For Investment. Will I Be Able To Rent It Out?
Thonglor-Ekamai is 1 of the most in-demand residential area for expats. Your tenant pool should be extremely wide. You will get working professionals and expatriates who are working in the CBD as well as around the vicinity. This area offers them a rich and fulfilling living experience.
What Is My Upside? Who Are My Potential Buyers When I Wish To Sell?
Properties prices in inner Sukhumvit (Ploenchit, Asoke) have risen sharply over the years. Coupled with the fact of the ever-increasing problem of traffic congestion, people are looking to stay further out for a better quality of life.
As such, Thonglor-Ekamai is experiencing the benefits the spill over both in terms of demand from buyers as well as tenants. We are just getting started.
What this means for you as an investor is that you now have the opportunity to enter the prime real estate segment of Bangkok with a relatively lower investment (versus purchasing properties in Silom, Sathorn, Asoke). We see this area continuing to evolve, reaching new heights in urban living while presenting excellent investment opportunities.
Even famous designers and local celebrities are competing to live in this prestigious area. When you are ready to exit, you will find your property appealing to both international investors as well affluent locals.
Conclusion
With its resilient economy and sustainable demand from locals, the Bangkok property market is still poised for further growth. As an investor, our best bet to hedge our downside risk would be to invest in a great development in a great location. If you decide to do so, Taka Haus is an extremely good proposition.
Developed by renowned Sansiri, quality is assured. Coupled with its excellent location, getting quality tenants for your property will be as easy as it can get.
Taka Haus will be launched worldwide simultaneously in September.
![[First Look] Oka Haus Sukhumvit 36 by Sansiri](https://investbangkokproperty.com/wp-content/uploads/2017/10/rsz_oka-haus-garden.jpg)
