The Ladprao – Phahon Yothin area is fast becoming a popular area of residence. There are on-going developments that will give residents in this area access to rail transport and a multitude of lifestyle offerings.
Let’s take a look at the major developments that are driving growth in Ladprao – Phahon Yothin.
Ladprao MRT Interchange
Currently, Ladprao – Phahon Yothin area is served by the Green BTS Line and MRT Blue Line, which runs to Asoke as well Bang Sue, the upcoming high-speed rail station. Many bus routes also service the area, and there are two expressways in the vicinity – Sirat Expressway and Uttraphimuk Toll Way (Don Mueang Toll Way).
Soon to be, Ladprao will be the interchange between the current Blue Line and the new Yellow Line.
The line heads east along Lat Phrao road to Bangkapi junction where it will interchange with the proposed Orange Line. The line then heads south along Srinagarindra Road to Hua Mark where it will interchange with the Airport Rail Link (Phattanakan station) (Phase I).
From Hua Mak the route continues south along Srinagarindra Road past Bangna-Trat rd all the way to Thepha Rak rd in Samut Prakhan Province. The line then heads west along Thepha Rak Road before terminating at Samrong where it will interchange with the BTS Sukhumvit Line (extension under construction) (Phase II).
We all know the positive impact transportation nodes have on property prices in the area, don’t we?
Bang Sue Grand Station
5 stops away from Ladprao along the Blue Line is Bang Sue. Bang Sue is currently undergoing a major transformation to become ASEAN’s largest rail transit hub. The Bang Sue Grand Station, a mega integrated project is being constructed. This place will be the ultimate interchange for the various rail transports as well as the highly anticipated high-speed rail, which will be running all the way up north to China.
Chatuchak Weekend Market
The global renown Chatuchak Market. The 35-acre (68-rai) area of Chatuchak is home to more than 8,000 market stalls. On a typical weekend, more than 200,000 visitors come here to sift through the goods on offer.
Central Ladprao
Situated next to Phahon Yothin MRT, Central Plaza Ladprao mall is one of Thailand’s largest and most popular malls. It is also directly connected to the Centara Grand Hotel.
The Potential Of Ladprao – Phahon Yothin
According to reports by PLUS Property, a leading Thai real estate agency and research firm, major developers are now snatching up good land plots in the area to launch condominiums. Resale prices have also risen 20%-40% over the last 5 years.
The rental market is also seeing strong returns of 5%.
More Grade A condominiums are being launched and prices are hitting THB180,000 per square meter and the upward trend is set to continue as demand for housing in the area increases.
From another report by Knight Frank in March 2017, all the positive developments are driving demand for housing in the area but supply is relatively low at the moment.
source: Knight Frank Thailand
There is potential for real estate in the Ladprao – Phahon Yothin area. The limited available land for development means there is an opportunity for investors to buy a property, be it for investment returns or own stay.
For now, the majority of the purchasers are end users. However, the rental demand is getting stronger as the area develops. According to Plus Property, the occupancy rate is very high at 90% – 95%. Its status as a popular residential area has also meant that independent restaurants, eateries and coffee shops have mushroomed in the area.
This positive trend is likely to continue as the mega-developments come to fruition.
When it comes to buying a condominium in Bangkok, investors can also consider getting a resale condo rather than a brand new one from the developer.
There can be various reasons why one would consider buying a resale condo. It could be that a popular development is already fully sold and there are no more units for sale from the developer.
It could also be a case whereby the investor would like to start getting rental returns rather than waiting 3 years. Or it can be for practical reasons whereby the buyer needs a place to stay in the very near future.
Some people will find older condominiums represent better value as they are able to get more spacious units with the same amount of money spent and purchase a property in a more central location.
On the flip side, the buyer should also be aware that older condos could be less aesthetically pleasing and the facilities could be lacking compared to the modern ones.
If you are planning to go down the route of getting a resale condo, here are 4 things that you should take note of.
Inspecting The Property
Since the property is completed, you are able to physically inspect it. You should make a trip down personally to see the property and its surroundings.
You can judge for yourself if the particular unit is a good one to consider. As well as being able to notice if the general upkeep of the common areas is done well.
This will affect the value of your property in the long run.
Location
This is always an important consideration for both new and resale condo. Is it near public transport? Are there amenities nearby? Is this an area that will capture good tenants? Enough said.
Deed & Ownership
You need to ensure the seller is the rightful owner of the property. You must also make sure that the sale transaction is lawful.
Ask for the actual title deed to make sure, while a letter confirming the payment of the deposit must be signed and sealed.
Engage A Reliable Agent Or Representative
A good and reliable representative or agent would be able to help with all the paperwork including contracts and deed transfers.
Make the effort to work with someone who is competent and whom you can trust. This will go a long way in eliminating risk and unnecessary unpleasantness.
Ever wondered what is it really like to own a property in Bangkok?
I had the chance to visit Daryl at Circle S Sukhumvit 12, a condominium he invested in a few years ago. This property is located within walking distance from Asoke BTS. Great location, yet is quiet as it’s tucked away in a little corner.
Watch the videos below as Daryl show us around the condominium.
PS: Daryl runs an investment blog and he regularly shares his opinions and insights on various subject matters. To read up more, visit www.daryllum.com
The Bangsue station is set to become the central railway terminal for the two high-speed rail, including the northern line (to Chiang Mai) and the Bangkok-Hua Hin Line. Bangsue station will also become the center of the Bangkok Mass Transit System (BTS).
21st December 2017: The construction of high-speed rail connecting Thailand and China has officially begun. The first phase of the project will connect Bangkok to Nakhon Ratchasima via a 252-Kilometer high-speed railway link. The second phase will then connect to Nakhon Si Thammarat, northeast Thailand and Laos.
It will eventually extend from Laos to China seamlessly forming part of the China-Indochina Peninsula International High-Speed Rail Link.
Bangsue Grand Station: Asean’s Transport Hub
In time to come, the entire high-speed rail network of the Pan-Asia Railway will be brought together in Bangkok, making Bangkok the transportation hub in Southeast Asia.
This has the potential to position Thailand as a key trading hub in the heart of South East Asia.
The Ministry Of Transport of Thailand plans to transform Bangsue MRT into a transport hub that will replace the existing Bangkok Station (Hua Lamphong) and all routes will terminate at the new Bangsue Grand Station.
This is propelling Bangsue into the spotlight, with many predicting this neighborhood to experience huge growth as it transforms into a transport and commercial hub for Bangkok and Asean.
Bangsue Grand Station (Artist Impression)
Source: Ministry of Transport and Communications
According to a report by The Nation, plans for the construction of Bang Sue Grand Station are well on track. The 218-rai (35 hectares) area surrounding the Grand Station will be developed as an Asean linkage and business hub, comprising three zones.
In Zone A, roughly 35 rai will be developed as the “Smart Business Complex”, comprising hotels, office buildings, shopping malls and parking.
Zone B will be developed as the “Asean Commercial and Business Hub”, covering a 78-rai plot within close proximity of Kamphaeng Phet Road, Bang Sue Grand Station, and Kamphaeng Phet MRT station.
Zone C will be developed as the “Smart Healthy and Vibrant Town”, occupying 105 rai at the Mo Chit 2 Bus Terminal.
Zone D (World Renowned Garden Interchange Plaza) – On 5 rai, this zone is adjacent to Chatuchak Market. It will become a large interchange zone among the transport modes, boasting retail spaces.
Bangsue Grand Station (under construction)
After the completion of Bangsue Grand Station (estimated to open in 2020), it is expected to attract more than 300,000 people a day. The gathering of crowds will inevitably result in housing demand coupled with rising house prices.
From studies conducted by Knight Frank Thailand’s research department, it was found that many countries, including the United States, Canada, Brazil, France, the Netherlands, Australia, Hong Kong, and Japan, which embarked on Transit Oriented Development (TOD), were successful in raising the values of land and property around their large-scale mass transit stations.In the example of the United States, the value of such land and property increased by 150 percent. The rise in value will, of course, vary from place to place, depending on each locality’s environmental laws, city planning, and level of connectivity provided by the mass transit system. In addition, the national and regional economies at the time of development also play a role in the success.
The existing transport infrastructure in Bang Sue-Mochit is well established.
BTS Mochit Station and MRT Chatuchak Station meet at Mochit. There is Mochit2, a long-distance bus stop nearby. For Bang Sue, the formally completed MRT Purple Line and Blue Extension Line will set up a transfer station at Bang Sue, along with the existing HSR service. Therefore, Bang Sue-Mochit area will also be followed by the construction of underground shopping malls and bus rapid transit system, covering an area of more than 3720000 square meters.
Connected rail transit includes:
Blue MRT line (in operation)
Light green Sukhumvit line (in transit)
Don Mueang Airport Line (under construction)
Sino-Thai high-speed rail line (under construction)
Bangsue is one of the highest densely populated areas in Bangkok. In 2016, the condominium sales rate was 91.6%, which was 10% higher than the average condominium sales rate of the whole of Bangkok.
The sheer grand scale of transformation in this area has already attracted many big scale developers, including condos and commercial projects such as Gateway Bangsue from TCC Land Asset World Co., Ltd.
Gateway Bangsue
The latter is situated just 650 meters from Tao Poon Station, with an investment of over 4 billion baht and around 40,000 square meters of retail space. It is slated to open in 2018, and expected to elevate Bangsue – Tao Poon further as an area that’s worth watching from both the property investor and owner standpoints.
Born of Sansiri’s dream of transforming Sukhumvit 77 into a rich lifestyle hub, the company’s latest megaproject development, T77 Community, delivers in spades.
Located on an over-50-rai plot of land in the center of Sukhumvit 77, the project and its surrounding area provide a complete array of lifestyle activities and residential options.
T77 Community is close to both the BTS station and Ramindra – At Narong Expressway.
The Allure Of T77
When I mentioned T77 to the locals, it seems like everyone knows about this place. And people do speak well of this megaproject. From speaking with the locals who stay in T77, these are some of the good things they have to say about the place.
Easy access to either On Nut or Phra Khanong
Very lush surroundings with plenty of landscaping
Double security – because one needs to pass the security of the compound and then the individual condo’s security
Big C and On Nut market are just nearby for all basic necessities
There are temples nearby to offer prayers and make merit
Beautiful and serene environment
It does sound like a good place to stay!
Exploring What’s At T77
T77 is composed of as many as 5,000 residential units in six Sansiri projects, which anchor this hip mid-town First Japanese residential community with “Habito” Community Mall – Sansiri’s first mall project within the same area.The mall has been carefully and lovingly designed to address all of the lifestyle needs of residents, with a fantastic selection of shops and world-famous restaurants, as well as a modern Co-working Space that is most conducive to productivity and creative endeavors.
The “Habito” Community Mall is an upscale lifestyle mall that caters to the residents living in the T77 town as well the nearby population.
Of particular note, the retail and F&B composition will include coveted Japanese brands to entice the burgeoning Japanese population, estimated to be the largest expatriate community in Thailand with over 150,000 people. As this group of people leads fairly insular lives, their needs will be well looked after under one roof. The extensive array of Japanese- centric goods and services will further serve as a magnet for Japanese living outside the immediate catchment area.
One of Thailand’s best international schools has also made a much-welcomed addition to the neighborhood.
San Samran Bridge
The San Samran Bridge bridges the canal that runs through T77. It is an iconic feature of the town. During festive seasons, events will be held along the bridge.
Entering into its 5th year, the winter market festival is a wildly popular event that draws larger and larger crowd as each year goes by.
Good Food and Good Fun. It’s a spectacle not to be missed!
Living In T77
In creating this community, Sansiri has also developed 6 residential projects within T77. These are all very popular with the local Thais. Over in T77 you can find a balance between quality living and not have to pay through your nose for a property in central Bangkok.
mori HAUS
hasu HAUS
THE BASE Park West Sukhumvit 77
Is T77 A Good Investment?
It will be hard to give a straight yes or no. If you have a high investment budget, if you are going for the high-end luxury segment, then you ought to be looking at developments in the core CBD of Bangkok.
I have also met my fair share of investors who no matter what I say, cannot imagine buying something that is not within immediate walking distance to the BTS or MRT.
If you belong to the above category then I say this is not for you.
Often, the biggest challenge for a developing country in South-East Asia is town planning. You may own the shiniest building in the neighborhood but if your surrounding is not well taken care of, it will certainly have an adverse effect on your property value.
That is also the reason why from my years dealing with international property, properties in the township tend to have good genuine demand. Rentability is high.
T77 is a town within a town. As someone staying inside, your immediate surroundings are planned for and taken care of by Sansiri. T77 is a private and peaceful enclave to come home to. You will love it as a holiday home and so will your prospective tenants.
The location is accessible both on Nut and Prakanong, surrounded by rich and varied food sources, both cheap and expensive.
And if you have the chance to visit T77, you will already find an increasing number of expatriates both Westerners and Japanese choosing to stay in this place.
For someone looking for a property with high genuine demand and not having an excessive budget, this is probably 1 of your best option in the vicinity.
As the Thonglor area becomes saturated with residential projects, nearby Sukhumvit Soi 36 – 38 is the new choice for property firms to develop luxury condominiums as demand remained strong in this part of Bangkok.
Sukhumvit Soi 36 – 38 is opposite Soi Thonglor (Sukhumvit 55). The location offers easy access by car to Sukhumvit and Rama IV Road. The residents here enjoy similar amenities as those living in Thonglor.
Traditionally, most of the development activities have focused around Sukhumvit Soi 55, which is widely considered the prime Thonglor. However, the continued strong demand for housing in this classy neighborhood has led to a spillover effect as the property prices along Sukhumvit 55 soared. Ekamai and Sukhumvit 36 – 38 are experiencing the positive effect of this spillover of demand as land-hungry developers look for land to build condominiums.
Price Trend in Sukhumvit Soi 36 -38
The rental and the resale market prices have generally been experiencing an uptrend since 2012. As an investor, you would be glad to know that the rental market is growing healthily and more importantly, there is a robust secondary market with a steady growth in demand for properties over the years. This signals the ability for you to execute your exit strategy when the need arises.
As it stands now, base on the average rent per square meter and the price in the area, a gross rental yield of 5-6% is achievable.
How Have The Prices Appreciated For Existing Developments?
Compared to Soi Thonglor, there really isn’t as many quality developments in this area as yet. However, this is slowly changing as major developers such as Sansiri, AP Thai and Ananda are aggressively seeking out developable land plots in this area.
Let us have a look at some existing developments and how their prices have fared since launch till now.
A Good Value Alternative To Thonglor – Ekamai For Investors
Compared to the condo prices in Soi Thonglor where it averages THB250,000 per square meter and the ultra-luxury condo breaching THB300,000 per square meter, investing in Sukhumvit Soi 36 -38 at sub THB200,000 per square meter does represent good value for investors.
There is much upside to be gained as long as the urbanization of Rama IV Road continues and gain momentum.
However, a word of caution to investors is to make the right call on the developer and quality of the project.
