The Phaya Thai–Ratchathewi area is set for an influx of interest from property buyers with the new educational institutes and shopping centres being built here creating demand. It is also close to Bangkok’s Central Business Districts that makes it an interesting place to live, according to new research from Plus Property.
The demand is coming from business people in the Pratunam district as well as investors and students. Responsive demand is 80-90 per cent for new projects in the Phaya Thai-Ratchathewi area, which is over 20 per cent higher than the rate in the CBD and other middle areas in Bangkok.
“The area has high potential approaching that of locations in Bangkok’s inner area. It also has shopping centres such as Siam Square and Siam Paragon, and famed institutions including Triam Udom Suksa School and Chulalongkorn University. This differentiates the Phaya Thai-Ratchathewi area from others within Bangkok’s middle areas and make it comparable to a CBD area,” says Plus Property Managing Director Anukul Ratpitaksanti in a press release.
The amount of new condo supply coming onto the market in the Phaya Thai-Ratchathewi area was pretty small between 2013 and 2017. Because of limited space for development, there won’t be a lot of new projects launched in the future either. This means new condos that do come online are in high demand.
“Development of new projects is expected to be limited in this area, and almost no launches of new projects took place in 2017. Therefore, condo prices in the Phaya Thai-Ratchathewi area are expected to rise at a rate which rivals that in CBD,” says Anukul.
The rate of return on investment in the Phaya Thai-Ratchathewi area is currently very attractive. High-rise condo projects close to BTS stations have a resale value of approximately THB200,000 per sq. metre while return on rent is estimated to be 5 per cent per year, according to Plus Property.