The changing faces of Ratchada, Phloenchit

Ratchadaphisek Road from the Rama IX junction to Lat Phrao Road and the area between the Phloenchit intersection and Wireless Road are rapidly shaping up as new commercial business centres and luxury residential areas in Bangkok, according to a survey by The Nation.
The two areas are looking at investment for new office buildings, commercial buildings and residences totalling more than Bt200 billion between now and 2013.
On Ratchadaphisek Road, big companies have office buildings under construction on the north-south strip with a market value of Bt80 billion. The organisations include American International Assurance (AIA), the Stock Exchange of Thailand, and Central’s head office and a department store. As well, the ninth tower of Grand Rama IX and G Land Tower are under construction. The buildings have combined floor space of 800,000 square metres. They will be completed in 2013.
Meanwhile, investment in the area between the Phloenchit intersection to Wireless Road and from the junction to Sukhumvit Soi 1 is expected to exceed Bt100 billion, including luxury hotels, condominium projects and office buildings. They include the Venture Park project, Central Park Hyatt, Noble Ploenchit, and luxury homes developed by Sansiri.
A number of property developers have launched new residential projects in the Ratchadaphisek and Phloenchit areas. These include Pruksa Real Estate, Sansiri, Noble Development, Asian Property Development, Land & Houses, and Supalai.
Pruksa director and chief business officer Prasert Taedullayasatit said Ratchadaphisek would become a new central business district for Bangkok when multinational firms and the SET moved their headquarters into the area. Development has already boosted land prices in the location from an average of Bt110,000 per square wah in 2007 to the present price of Bt600,000 per square wah (Bt150,000 per square metre).
Meanwhile, the residential supply in the Ratchadaphisek area is only about 2,000 units, worth about Bt4 billion. That is not enough to meet demand in this location, which is expected to grow steadily between now and 2013. As a result, Pruksa has launched a new condominium project on Ratchadaphisek Road, Ivy Ampio, which has sold about 70 per cent of total project value of Bt1.35 billion.
Pruksa executive vice president Wanna Chaisupatanakul said the project had secured environmental-impact-assessment and construction permits. Construction is expected to start near the end of this year, with completion due in 2013, she said.
Noble Development has also bought land on Ratchadaphisek Road. The company plans to launch a condominium project there next year, company president Thongchai Busaraphan said.
Supalai plans to develop 10 condominium buildings worth more than Bt10 billion on Ratchadaphisek Road after winning a bid to buy land from the Financial Institutions Development Fund in August. The projects will launch next year, managing director Atip Bichanond said.
Meanwhile, Noble Development has launched a luxury condominium project on Phloenchit Road that it calls Noble Ploenchit worth Bt14 billion, which has sold about 60 per cent or Bt800 million worth after its launch in July.
Sansiri also plans to launch a luxury condominium project, which will have three buildings, on Phloenchit Road after it bought the land for Bt1.5 million per square wah early this year.
“We plan to introduce the project to the market in 2012,” Sansiri president Srettha Thavisin said.
Bangkok’s new city plan, which may become effective on May 15, 2013, will change Ratchada from low-density to high-density, opening it up to high-rise buildings. Phloenchit will be a commercial and high-density zone. This will support huge investment in the area, driving up land and residential prices as well as rents for commercial and office space close to levels now seen in the Silom, Siam and Sathorn central business districts.