The increase in prices of real estate in Bangkok’s Central Business District (CBD) has pushed retail investors to review their investment strategies. Many are now reevaluating the “risk and reward ratio” of buying in Prime Central Bangkok.

The high property prices of new projects in recent years have led to a decrease in rental yields and the current situation has made forecasting capital appreciation returns difficult.

This has led investors to seek opportunities in new, up-and-coming neighbourhoods. Whilst this is risky, for a rapidly transforming city like Bangkok, the strategy of speculating on the “Next Central Business District” presents an opportunity.

Extensions of Bangkok’s Prime Areas are a recurring market trend in the city’s urban development history. Many previously “peripheral locations” are now desirable and high-coveted. This includes areas such as Rama 9- Ratchada and even the Riverside (Charoen Krung – Charoen Nakhon Road).

Some neighbourhoods in the Capital are starting to position themselves as major business, commercial and lifestyle areas. They are considered “Peripheral Outer Bangkok” and property prices are still affordable.

Emerging business and lifestyle districts in Bangkok

Bang Na

Located in Eastern Bangkok, the neighborhood is often touted as Bangkok’s gateway to the Eastern Economic Corridor. This is due to its geographical proximity to the provinces of Chonburi and Rayong that are the heart of Thailand’s export processing and manufacturing zones.

This is an up-and-coming area with modern developments that include the popular Bangkok International Trade & Exhibition Centre (BITEC) which hosts a wide range of events and conventions throughout the year. And due to its geographical location, Suvarnabhumi Airport is only a 30-minute drive away. The area also provides easy access routes to Rayong and Chonburi in eastern Thailand.

Bang Na has grown rapidly in recent years with new commercial and residential developments. It also has large malls, including Megabangna, and Central Plaza Bangna. The malls not only provide many options for shopping, but also for dining.

It is easily accessible via the the Bangna BTS Skytrain Station, which can also give easy access to other districts in Bangkok.

This part of Thailand has been in the spotlight in recent years, especially with the opening of the ASEAN economic community. With property professionals and developers predicting that the area has the potential to be a commercial and business hotspot for Inter-Asean trade.

Bangna is no longer an industrial neighborhood, it is changing to be an affluent area with many expensive low-rise housing projects and top international schools such as Bangkok Pattana International School, and Berkeley International School located there.

Bangna is also the center of intense commercial and residential development activity, with several large projects are under construction. This includes the Bangkok Mall located on the Bangna Intersection, and it will be the largest mixed-use complex in South East Asia.

Another project under construction is The Forestias by MQDC on an expansive 30-rai of land. The mixed-use project will consist of office towers, residential developments and a mall.

2 other projects include the extension and upgrade of Mega Bangna and the launch of Central Village, a Premium Outlet Mall.

Phahon Yothin-Ladprao

Located on the northern section of Bangkok, Phahon Yothin- Ladprao is an established and popular residential and lifestyle area.

It is well connected and convenient thanks to the extensions of the BTS Skytrain and MRT Line. Residents can access the northern, western and southern parts of the city with ease. Don Mueang International Airport is also located in close travelling proximity.

It has not gone unnoticed by the city’s commercial developers that have invested into gentrifying and upgrading the retail and leisure offerings.

The residents of Phahon Yothin-Ladprao can enjoy several shopping destinations such as Union Mall, CentralPlaza Ladprao and Major Ratchayothin Complex. The area is also host to the iconic Chatuchak Market, the biggest open-air market in South East Asia and an important wholesale market for the region’s retailers.

Thanks to the opening of the Bang Sue Grand Station, Thailands new and modern railway hub, and the largest is ASEAN,  area residents have access to metropolitan Bangkok and several cities of Thailand. There are also plans for it to be a Trans-ASEAN connection from Bangkok to many parts of South East Asia.

The large development sites around the Bang Sue Grand Station have been allocated for potential mixed-use developments (I.e., Office and Business, residential, retail and leisure). This will transform the Phahon Yothin-Ladprao into a logistics and business hotspot.

Rama IV Road

Rama IV Road is a strategically positioned thoroughfare on the periphery of several of Bangkok’s most exclusive neighborhoods including Silom, Ploenchit, Samyan and Phrom Phong.

This proximity to Bangkok’s Prime Areas combined with the availability of land sites, have made this road a development hotspot. Rama IV Road is currently welcoming numerous transformational mega-projects that are completely changing the character of the area.

These projects include the already completed Samyan Mitrtown and The PARQ. Other major projects still under construction include “Dusit Central Park” , a joint venture led by Dusit Thani and Central Pattana and One Bangkok by TCC (Phase 1 opening Q4 2023), a mixed-use complex spread over 120 rais of land comprised of A-Grade office towers, 5 luxury hotels, 3 luxury residences and several leisure and lifestyle venues.

This is a small list of the large projects currently underway, however this is enough of an overview to provide the scale of the urban transformation that Rama IV Road is experiencing.

Numerous property professionals are predicting that the neighborhood is likely to attract more developments in the near future. Eventually establishing Rama IV Road as an official “Extended Central Business District”!

Peripheral markets as an investment opportunity

These neighborhoods are still considered “Peripheral Markets” and in many ways remain speculative bets. This means that real estate in these locations is still attractive when compared to Central Bangkok.

Investors prospecting these neighborhoods should be highly-selective, only taking a manageable level of risk that is offset by potentially high returns.

Fresh Property is an established real estate agency offering consultancy, sales, rental and property management services.

If you are an investor or homebuyer interested in the real estate options available in Bangkok’s up-and-coming peripheral markets, feel free to browse our Agency’s extensive collection of new projects and resale properties.

Fell free to end us an inquiry or email us at [email protected].