Mass transit drives condo development on Thon Buri side: Plus Property

The areas around Krung Thonburi and Wongwian Yai have become new destinations for high-rise development in Bangkok, with an absorption rate of 90 per cent in 2014, while average condominium prices and rental rates have risen by 15 and 32 per cent respectively. 

Poomipak Julmanichoti, managing director of Plus Property, said the expansion of public transport systems to connect various parts of Bangkok had pushed potential property buyers to seek out condominium projects situated close to Skytrain routes for extra convenience and reduced commuting expenses. This has led to the emergence of new residential property hot spots across the city. 

Plus Property’s research has indicated that the Krung Thonburi-Wongwian Yai area now possesses significant potential for future high-rise development.

“In terms of demand, we are seeing higher interest in condominium developments in this area. Market surveys found that the average take-up rate in the second half of 2014 was as high as 79 per cent out of 9,691 available units. 

“On the supply front, the number of available units also grew by 37 per cent year on year in the same time frame, which was in line with the 38-per-cent demand growth. 

“Additionally, new projects continue to be introduced into the market. These new arrivals appeared to have enjoyed a rapturous reception in the market in our latest survey with an absorption rate of 90 per cent. (Figure 2) This reflects a continuing trend of high-rise residential property growth and increasing demand for condominium projects in this zone.

“This demand growth has driven prices up. In the second half of last year, average condominium prices went up by 15 per cent compared with 2012, reaching Bt100,780 per square metre. (Figure 3) “Areas around the banks of the Chao Phraya River along Krung Thonburi Road to Wongwian Yai now boast an average price of Bt116,013 per square metre, while rental rates in 2014 shifted up by 32 per cent from two years ago to Bt441 per square metre or Bt15,000-25,000 per month for a one-bedroom unit. These factors in essence guarantee high demand for the area.”

The Krung Thonburi-Wongwian Yai area is a long-standing commercial zone on the Thon Buri side of Bangkok. Packed full of residents and communities, the zone is close to the heart of the city and offers convenient commuting to areas in the central business district (CBD) such as Silom and Sathorn. 

The Silom Skytrain route, which links Phra Nakhon and Thon Buri districts, is an area that enjoys particularly high growth of residential high-rises. Growth is especially high in Wongwian Yai – itself a hub of business and transport in the district with easy CBD access via the Wongwian Yai and Krung Thonburi Skytrain stations. 

The area is also a meeting point of four major roads that connect Bangkok to other provinces or the old town on the Phra Nakhon side. Additionally, the zone’s peaceful atmosphere as well as location in the vicinity of the Chao Phraya River and the booming retail hub in Charoen Nakhon have combined to catch the eyes of those looking for urban residential properties along Skytrain routes on the Thon Buri side.

“Demand on the Thon Buri side has room to grow even further, especially since Wongwian Yai will soon become a Skytrain interchange that brings together the Green, Purple and Red lines,” Poomipak said. “Condominium prices here remain somewhat lower than those in CBD zones, and its relative closeness to Charoen Nakhon’s upcoming luxury malls will drive interest higher in the future. 

“We can say that the Krung Thonburi-Wongwian Yai area is a location with high potential for residential high-rise development, and it would be no surprise to see purchase and rental prices soar along with its growth.”